2009 (4) TMI 412

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the income of the assessee, first set off the profit from speculation business against the carried forward speculation loss. Thus dismiss the appeal of revenue.
SUBHRO KAMAL MUKHERJEE, KALIDAS MUKHERJEE JJ M.P. Agarwal with S.S. Sarkar for the appellant. JUDGMENT This is an appeal under section 260A of the Income-tax Act, 1961 ("the said Act" in short) against an order dated September 5, 2008 passed by the Income-tax Appellate Tribunal ("the said Tribunal" in short) pertaining to the assessment year 2003-04. 2. On or about December 1, 2003, the assessee submitted his return showing nil income. The Assessing Officer issued notices under section 131 of the said Act to the brokers through whom the transactions took place. The said brok .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... computing the income of the assessee, first set off the profit from speculation against the carried forward speculation loss in view of Circular No. 23 (XXXIX-4) D of 1960, dated September 12, 1960 issued by the Central Board of Direct Taxes. The relevant part of the circular runs as follows : "Point (v) : Speculation loss, if any, carried forward from the earlier years or the speculation loss, if any, in a year should first be adjusted against speculation profits of the particular year before allowing any other loss to be adjusted against those profits. Board's decision : The suggestion is acceptable. For the purpose of set off under section 10 and section 24(1), the speculation loss of any year should first be set off against the specula .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... s shall be allowed to be carried forward to the following assessment year and set off against the speculation profits, if any, in that year, and so on. 8. It is true that the power of revision under section 263 of the said Act is of wide amplitude, but such power is certainly not an arbitrary or unchartered one. It is not meant for a roving enquiry. Before exercising such power, the Commissioner of Income-tax has to be satisfied that the order of the Assessing Officer is erroneous and it is prejudicial to the interests of the Revenue. 9. In this case, the Assessing Officer, while making the assessments, acts in a quasi-judicial capacity and, therefore, the discipline of such function demands that he should follow the binding decision rend .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X