2003 (1) TMI 69

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....facts and in the circumstances of the case, the learned Income-tax Appellate Tribunal was justified in directing the Assessing Officer to compute the total income of the assessee without applying the provisions of Explanation to section 73 when the loss in share trading exceeded the income from other sources and the loss was a loss from speculative business contrary to the finding of the Income-ta....

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.... head of interest on securities and income from other sources exceed the income of the assessee on other heads. From page 25, paragraph 3, of the order of the learned Tribunal, it appears that the income from other sources was Rs. 5,73,701 whereas the business income was Rs. 3,33,670. Upon such finding, the Tribunal had allowed the benefit of the Explanation to section 73 and had permitted setting....

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.... of speculation loss with speculation profit only. Speculation loss is not permitted to be adjusted against business profit. This restriction is relaxed and adjustment is made permissible by reason of the Explanation in respect of a company whose gross total income consists mainly of income chargeable under the heads specified. It is the gross total income, which is to be taken into account first.....

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....3) of the Indian Income-tax Act, 1922. There is hardly any difference in the definition of "income" in the 1961 Act with that of the 1922 Act. In the case of Eastern Aviation and Industries Ltd. v. CIT [1994] 208 ITR 1023, this court had held that the Explanation to section 73 could be applied before the principle of deduction is applied, namely after computing the income as defined under section ....