2018 (5) TMI 1779 - HC - Income Tax

Set of losses - Held that - Principal income of the respondent assessee is from speculation business and as such certain losses could not be set off otherwise than against gains from the same business. It was found as a matter of fact that more than 50 per cent of the business of the assessee was not on account of speculation. No legal issue arises in such circumstances. Expenditure incurred on account of income which is exempted from tax is not eligible for deduction. Again on the factual basis the Appellate Tribunal found that the expenditure claimed as a deduction was not for the purpose of any income which was exempted from tax. Share application money - AO found that several of the applicants for issuance of further shares in the assessee shared the same 12 Waterloo Street address as the assessee and that one individual had accepted notices under Section 133(6) of the Act though different rubber stamps were used along with the signature. The Tribunal was satisfied that the identities of the applicants for shares in the assessee had been established. No legal question arises as a result of such finding. No question of law.

Summary

The High Court of Calcutta dismissed the appeal as it did not involve any legal questions. The court found that more than 50% of the assessee's business was not speculation, the claimed expenditure was not for tax-exempt income, and identities of share applicants were established. (Case citation: 2018 (5) TMI 1779 - CALCUTTA HIGH COURT)