2018 (9) TMI 969

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....enior Standing Counsel for the Revenue has filed a memo dated 29.08.2018, reporting about the demise of the respondent/assessee and in his place, to implead his son as necessary contesting respondent, the memo filed by the Revenue, is ordered and the cause title is directed to be amended accordingly. 3.The appeal has been admitted on 25.02.2009, on the following substantial question of law:- "Whether on the facts and circumstances of the case, the Tribunal was right in holding that the loss sustained in business can be set off against betting and gambling income; and only the net income is to be taxed under Section 115-BB?" 4.It is seen that identical question of law, for the assessment year 1998-99, was considered by the Div....

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....15BB of the Act. In view of the specific provision contained in Section 115BB of the Act under Chapter XII of the Act, which provides for determination of tax in certain special cases, the special rate of tax is applicable for the entire income of winnings from horse racing and should be subject to tax at the special rate provided therein. It is not the case of the assessee that the income being brought to tax is earned from owning and maintaining the horses. Therefore, in our considered opinion, the provisions of Section 58(4) of the Act will not come into play. 13.The methodology of computing tax on Long Term Capital Gain vis-a-vis Section 112 of the Act for which the assessee relied on the CBDT Circular No.721 dated 13.9.95, tho....