1971 (7) TMI 10 - SC - Income Tax

Whether the loss of ₹ 21,881 in speculative transaction is an admissible deduction in the determination of the net income, profits and gains from business under section 10 - assessee is not entitled to set off loss of speculative business against profit of non-speculative business - we answer that question in the negative and in favour of the department

Summary

The Supreme Court allowed an appeal regarding the set-off of a loss in speculative business against profits from non-speculative businesses in the same accounting year. The court revoked the High Court's decision and ruled in favor of the department, disallowing the set-off claimed by the assessee. The appeal was allowed with no order as to costs. (Case citation: 1971 (7) TMI 10 - Supreme Court)