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TMI Blog2013 (4) TMI 549X X X X Extracts X X X X X X X X Extracts X X X X ..... tion to Section-73 and is entitled to set off the losses from sale and purchase of the share against the profits of the business of the company from loans and advances. Thus proceedings for re-assessment are quashed. In favour of assessee. - Writ Tax No.-1554,1555,1556 of 2005 - - - Dated:- 2-4-2013 - Prakash Krishna And Ram Surat Ram (Maurya),JJ. For the Petitioner : Rakesh Ranjan Agrawal, Suyash Agrawal For the Respondent : C. S. C.,R. K. Upadhyay ORDER 1. Heard Sri Rakesh Ranjan Agrawal, counsel for the petitioner and Sri R.K. Upadhyay, Senior Standing Counsel, for the Revenue. 2. The aforementioned writ petitions have been filed for quashing the notices issued by Assessing Officer (respondent-1) under Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioner has been escaped assessment for the Assessment Year 1998-1999. The petitioner, by letter dated 30.09.2004, requested that the original return of the petitioner be treated as a return in compliance of the notice dated 23.08.2004. Thereafter, the petitioner, through letter dated 15.10.2004, requested for supply of the reasons recorded for initiating the proceedings for reassessment. However notice dated 29.07.2005 has been issued without supplying the reasons. Subsequently reasons were supplied through letter dated 12.09.2005. The reasons in substance are that the business of the petitioner was to earn income from interest on advances and loans. Share trading activities of the petitioner was 'speculative business' as such loss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, be carried forward to the following assessment year, and-- (i) it shall be set off against the profits and gains, if any, of any speculation business carried on by him assessable for that assessment year; and (ii) if the loss cannot be wholly so set off, the amount of loss not so set off shall be carried forward to the following assessment year and so on. (3) In respect of allowance on account of depreciation or capital expenditure on scientific research, the provisions of sub-section (2) of Section 72 shall apply in relation to speculation business as they apply in relation to any other business. (4) No loss shall be carried forward under this section for more than eight assessment years immediately succeeding the assessment ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness of purchase and sale of shares by the petitioner is speculation business. A Division Bench of this Court in Income-tax Appeal Nos. 282, 284 of 2000 Commissioner of Income-tax Vs. M/S Narain Properties Ltd. decided on 30.05.2012, has held that the petitioner is covered under Explanation to Section-73 of the Act and is entitled to set off the losses from sale and purchase of the share against the profits of the business of the company from loans and advances. We respectfully agree with the same . 6. In view of the aforesaid discussion, the writ petitions succeed and are allowed. The impugned notices dated 23.08.2004 under Section 148 of the Act and dated 29.07.2005 under Section 142 (1) of the Act, initiating proceedings for re-assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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