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TMI Blog2013 (2) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... r (supra) has not been withdrawn and therefore would still govern the treatment to be given to the brought forward speculation losses though it was issued under the 1922 Act. It is not the case of the revenue that the provisions of section 24 of the old Act and section 73 of the new Act are materially different and therefore the circular can have no application under the new Act. The order of the Tribunal is in conformity with the legal position that beneficial circulars issued by the CBDT are binding on the income tax authorities see Navnit Lal Zaveri vs. K.K.Sen (1964 (10) TMI 16 - SUPREME COURT) - appeal dismissed as without merit. - ITA No.26/2013 - - - Dated:- 7-2-2013 - MR BADAR DURREZ AHMED AND MR R.V.EASWAR, JJ. For th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he issue of carry forward of the speculation losses. The second ground was that the assessee did not furnish the particulars of share trading so as to arrive at the true profits from the speculation business in the current or earlier years. 3. On appeal the CIT(Appeals) by order dated 14.8.2007 directed the AO to allow the set off of the speculation losses of the assessment years 1998-1999 and 1999-2000 against the speculation profits for the assessment years 2000-2001 as claimed by the assessee. 4. The AO gave effect to the order of the CIT(Appeals) and in doing so first adjusted the current year s loss from all the businesses of the assessee against the current year s profits. The assessee had suffered loss in the business carried o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plication stating that the method adopted by him with regard to the adjustment of the brought forward speculation losses was in accordance with the provisions of section 71 of the Act. 6. Aggrieved, the assessee carried the matter in appeal before the CIT (Appeals). He noted that the assessee s method of adjustment of the brought forward speculation losses had the approval of the judgments of the Calcutta High Court in CIT vs. New India Investment Corporation Ltd. (1994) 205 ITR 618 and CIT vs. Pradeep Kumar Todi (2009) 181 Taxman 29=(2010) 325 ITR 96 and a judgment of the Bombay High court in the case of Navnitlal Ambalal vs. CIT (1976) 105 ITR 735. He noted that in these judgments the Calcutta and Bombay High Courts have applied the cir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... comes. The Board Circular though issued in the context of Section 24 of the 1922 Act, has been held by the Courts hold the field. We do not find any infirmity in the order of the Ld. Commissioner of Income Tax (Appeals). Accordingly, we uphold the same. 8. Having considered the matter, we are of the view that there is no merit in the appeal and no substantial question of law arises. The Tribunal has applied the well-settled position that circulars issued by the CBDT relaxing the rigour of the provisions of the Act are binding on the AO and others who are executing the Income Tax Act (see: The Constitution Bench judgment of the Supreme Court in the case of Navnit Lal Zaveri vs. K.K.Sen (1965) 56 ITR 198). There is no dispute that the ci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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