2010 (6) TMI 760 - AT - Income Tax

Summary

Issues involved:
The judgment deals with the issue of granting set off of speculation loss against speculation profit u/s 144 r.w.s. 254 of the Income-tax Act, 1961 for assessment year 1993-94.

Comprehensive Details:

1. Background and Appeal by Revenue:
The appeal by the Revenue arises from the order of Commissioner of Income-Tax(Appeals)-XII, Ahmedabad regarding the set off of speculation loss against speculation profit. The assessment for the year 1993-94 was framed by ACIT (OSD) Range-6, Ahmedabad u/s.144 r.w.s. 254 of the Income-tax Act, 1961. The Revenue contested the direction to grant set off without evidence of speculation profit.

2. Facts and Proceedings:
The assessee initially declared income of &8377; 480282/- for the year 1993-94. The ACIT disallowed the claim of set off of speculation loss. The matter went through appeals to CIT(A), Tribunal, and finally back to the AO for assessment. Despite notices issued, the AO finalized the assessment at an income of &8377; 15,51,030/-. The CIT(A) allowed the claim of the assessee based on previous orders.

3. Judgment and Ruling:
The Tribunal found that the AO did not consider relevant details and notices during the assessment process. It was noted that the assessee had provided necessary details regarding transactions, including compliance with a notice from the ACIT. The Tribunal confirmed that speculative profit and loss were genuine and already proven. Citing a previous High Court ruling, the Tribunal upheld the CIT(A)'s decision to allow the set off of speculation loss. The appeal by the Revenue was dismissed based on the established facts and legal precedents.

4. Conclusion:
The Tribunal dismissed the Revenue's appeal, affirming the decision to grant the set off of speculation loss against speculation profit for the assessment year 1993-94.