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TMI Blog2014 (2) TMI 943X X X X Extracts X X X X X X X X Extracts X X X X ..... t previous year and be set off or be adjusted against the income of any speculation business of the said previous year – The loss of AY 2006-07 was allowed to be carried forward to be set off of subsequent years' speculation business profit against this speculation loss - In AY 2007-08, there is no objection on the part of the revenue – the revenue has treated this loss in AY 2006-07 as speculation loss arising out of the same business - the assessee is carrying on share trading activity in share business which is a speculation business in term of explanation to Section 73 of the Act – thus, there was no infirmity in the order of CIT(A) – Decided against Revenue. Rebate on account STT – Calculation of MAT u/s 115JB of the Act – Allowabil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raised following ground no.1: "1. That "on the facts and circumstances of the case and in law the Ld. CIT(A) erred in allowing set off of speculation loss of earlier year against profit of the same business during the current year whereas the act clearly specified that such loss can be set off against 'any other' speculation business". 3. We have heard rival submissions and gone through facts and circumstances of the case. The AO noted in his assessment order that this loss pertains to AY 2006-07 and in AY 2006-07 it was treated as speculation loss and according to him, this loss cannot be set off from the business income of AY 2008-09 and he disallowed by invoking the provisions of section 73 of the Act. Aggrieved, assessee preferred a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... / brought forward losses is allowed in the assessment year 2007-2008, the same should be allowed in the assessment year 2008-2009 also. I have considered the submissions and perused the material placed on record. From the facts as brought on record, it is apparent that there has not been any change in the nature of the transactions during the year under consideration as compared to the preceding year. The nature of transactions in shares and securit es as carried out by the appellant company is admittedly speculative. ln CIT v. Soorajmall Baijnath Agencies (P) Ltd.[2005]272 ITR 325, it has been observed that Section 73(2) prescribes that loss of the speculation business of a particular year can be carried forward to the subsequent previou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AY 2007-08 against its profits and balance sum of Rs.51,71,250/- was claimed in the relevant AY 2008-09. In AY 2007-08, there is no objection on the part of the revenue. It is also a fact that revenue has treated this loss in AY 2006-07 as speculation loss arising out of the same business. In this year also the assessee is carrying on share trading activity in share business which is a speculation business in term of explanation to Section 73 of the Act. Once this is the position, we find no infirmity in the order of CIT(A) and we confirm the same. This issue of revenue's appeal is dismissed. 5. Coming to next issue in this appeal of revenue against the order of CIT(A) allowing rebate on account STT from the tax calculated u/s. 115JB of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ternative tax under Section 115JB of the Income Tax Act. Mr. Khaitan, Learned Senior advocate happened to be present when the matter was taken up for hearing. He pointed out that this question is already covered by a judgment of the Karnataka High Court. He produced a copy of the judgment in the case of the Commissioner of Income Tax vs. M/s. Horizon Capital Ltd. wherein the following view was taken: "17. Therefore, the contention that this benefit is not available to the assessee whose total income is assessed under Section 115JB has no substance. In other words, when the total income is assessed and the tax chargeable is computed, it is from that tax which is chargeable, the tax paid under Section 88E is given deduction, by way of reb ..... X X X X Extracts X X X X X X X X Extracts X X X X
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