TaxTMI 
TaxTMI 
2017 (10) TMI 731
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.... 2005-2006. 3. The brief facts of the case are that the assessee company is in the business of Iron Alloys Steel, MS Ingots as in the past. The assessee company has also shown the interest income and profit from sale of shares during the year of consideration. 4. The assessee company has filed return of the income declaring nil income after setting off business loss of the earlier year of Rs. 2,16,81,488.50 to the extent of available profit has been filed. The assessing authority has completed the assessment under Section 143(3) of the Income Tax Act at the total income of Rs. 2,17,46,490/- treating the share trading business as speculative profit to the tune of Rs. 3,84,09,932/-. 5. The assessee has filed an appeal before the CIT ....
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.... 72 and 73 in particular and Sections 70 to 80 in general which do not provide for set off loss of non-speculative business against income from speculative business. III. Whether the ITAT erred in law and in fact in failing to appreciate that Section 28 provides that a speculative business shall be deemed to be distinct and separate from any other business and this being the case loss from non-speculative business could not be set off against profits of speculative business. 9. The appeal has been admitted on the abovementioned questions of law by this Court on 10.10.2013. Notices are issued to the assessee. However, even after the service, no one has put appearance on behalf of the assessee. 10. We have heard the learned cou....
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....laim of the assessee as also the appeal filed by the assessee. For the ready reference the relevant extract of the order of the Tribunal is quoted hereinbelow; "8. To understand the scope of these restrictions, it will be appropriate to take a look at the purpose and the backdrop in which the restrictions on set off of speculation losses was brought in the statute. Until assessment year 1953-54, income tax law did not recognize any such distinction between losses in speculation and non-speculation business. It was only with effect from 1st April, 1953 that the distinction between speculation business and non-speculation business was introduce by introducing a proviso to section 24(1) of Income Tax Act, 1922, which is broadly in par....
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....from business, profession or vacation. It is during this computation to be made by the Income-tax Officer under Section 23 of the income from business, profession or vacation in accordance with section 10(1) of the Act that the Income-tax officer is further required the apply the provisions of section 24. Section 24 is, thus, a provision laying down the manner of computation of total income. The principal clause of section 24(1) lays down that, if there be a loss of profits or gains in any year under any of the heads mentioned in section 6, that loss has to be set off against the income, profits or gains of the assessee under any other head in that year. If this provision had stood by itself without any provisos, the result would have been ....