1980 (9) TMI 12

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....elates to the assessment year 1964-65. The assessee was carrying on the business of brokerage and purchase and sale of jute and hessian goods. The ITO found that both the purchase and sale transactions in the business of jute and hessian goods were settled otherwise than by actual delivery. He, therefore, treated the business of purchase and sale of jute and hessian goods as speculation business. ....

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....f the AAC, the Department filed an appeal before the Appellate Tribunal. The Appellate Tribunal, following the order in the case of Mr. Bilas Rai & Co., held that the brokerage on purchase and sale of hessian goods should also be treated as speculation business and, therefore, confirmed the order of the AAC on this point. Upon this fact, the following question of law was referred to this court ....

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....ioned in the said judgment, the Supreme Court noticed, that, in each of the transactions, the assessee had received commission from the parties on whose behalf the transactions were done. The assessee had claimed to set off such commission against the speculation losses. It was held by the Supreme Court that the commission received by the assessee could not be set off against the speculation losse....