TaxTMI 
TaxTMI 
2018 (1) TMI 943
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....d Income Tax Appellate Tribunal, Kolkata has erred in holding that Explanation to section 73 of the Income Tax Act, 1961 was not applicable by considering the income declared under section 132(4) of the Income Tax Act, 1961 as "Income from other sources" that too without considering the true nature of the activity carried on by the assessee and also without deciding the principle business of the assessee? b) Whether the Learned Income Tax Appellate Tribunal, Kolkata has erred in holding that the seized cash should be treated as paid under section 140A on the stipulated day of 120 days under section 132B (1)(i), thus directing to calculate the interest chargeable under section 234B without appreciating the fact that no seizure of ca....
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....y of a few months, on 30th March, 2009. The first question suggested by the Revenue is in regard to its contention that the assessee having had disclosed Rs. 15 crores as additional income, the same was income from other sources making it a company within the exception provided in the explanation to section 73 of the Act. Hence, it could not claim to set off its speculation loss against such income. The other question suggested is with regard to the Assessing Officer having charged interest for a period prior to which the assessee had applied to have its tax liability adjusted against the seized cash. Mr. Chowdhary, learned advocate appeared on behalf of the Revenue and submitted that the Assessing Officer was right on both counts. Th....
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....mar (supra) was relied upon since in that case speculation loss was not allowed to be set off against income disclosed under the Voluntary Disclosure of Income and Wealth Ordinance, 1975. Mr. Chowdhary submitted, in this case too there was voluntary disclosure of additional income against which speculation loss could not be allowed to be set off. He then relied upon Eastern Aviation and Industries (supra) to submit, the assessee in that case even though had a positive dividend income and losses in share dealing and speculative businesses, but the explanation to section 73 was made applicable to the assessee. R.P.G. Industries Limited (supra) was relied upon as in that case the share trading loss of the assessee therein was held to have had ....
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....st profits from other business activities of the same year. He submitted, the provision for set off of losses in speculation business was under section 24(1) of the old Act. The deeming provision in the explanation to section 73 however came into effect from 18th April, 1977. As such the said decision was not applicable to the case of the assessee. Sumati Kumar (supra), he submitted, too was not applicable since in the voluntary disclosure of income by the assessee in that case, it tried to set off an admitted loss in speculation business. In this case the Assessing Officer though on the one hand said the explanation in section 73 was not applicable to the assessee but thereafter, by deeming the loss suffered by the assessee in its share....
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....lities of M/s Shoparna Brothers Pvt. Ltd. from the cash seizure of Rs. 17,51,79,994/- and released the amount of Rs. 4,43,00,000/- in favour of appellant, as requested for, on or before 06.08.2008, ie, within 120 days from the date of seizure. An application was filed by the appellant also before the Assessing Officer on 28.05.2008 showing categorically his tax liability of Assessing Year 2008-09 at Rs. 4,43,00,000/- u/s 140A of the I.T. Act with a request for adjustment of this liability against the release of cash seized from M/s Shoparna Brothers Pvt. Ltd. Assessing Officer has stated in the assessment order that the cash seized cannot be applied as requested by appellant and M/s Shoparna Brothers Pvt. Ltd. because CBDT has prohibited th....
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....that section, the company would be deemed to be carrying on a speculation business to the extent to which the business consists of the purchase and sale of such shares, exceptions provided. The Assessing Officer has applied one of the exceptions, as covering the assessee. The CIT(A) and Tribunal have concurrently found the assessee to be accordingly excepted out of the application of the explanation. The assessee thus not deemed to be carrying on speculation business,loss incurred by it would be a business loss and the assessee entitled to set off the same against its income from other sources under section 71. That being our view, we accept the submissions of Mr. Khaitan in distinguishing the cases cited on behalf of the Revenue as not app....