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TMI Blog2014 (12) TMI 808X X X X Extracts X X X X X X X X Extracts X X X X ..... 727 of 1998. 3. The facts stated briefly are that the appellant-assessee filed his return of income on 2.11.193 for the assessment year 1993-94, previous year being 1992-93, declaring income of Rs. 4,17,944. The assessment was processed u/s.143(1)(a) and an adjustment was made of Rs. 4,59,740/- to the income returned by the appellant. The said adjustment was challenged by the appellant u/s.154 of the Income Tax Act, 1961. By order dated 5.8.1994, the said adjustment was rectified and deleted and the income was computed u/s.143(1)(a) at Rs. 4,17,944/- as returned by the appellant. 4. Thereafter, notice was served u/s.143(2) and assessment order was passed u/s.143(3) on 30.1.1996 computing the total income at Rs. 8,77,684/-. The main additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant. 7. The appellant, thereafter, preferred appeals to the Income Tax Appellate Tribunal being I.T. Appeal No.579/Ahd/1998, 1723/Ahd/1998 and 1727/Ahd/1999 challenging the order of CIT(A) disallowing the loss claimed by the appellant. The Tribunal confirmed the order of CIT(A) and dismissed the appeal of the appellant holding that the appellant was not justified in contending that the said transaction in TISCO were not speculative transactions. The Tribunal heard the appeal of the appellant along with the appeals of his brothers, Kantibhai A. Patel and Chandrakant A. Patel whose appeals also involved similar point of disallowance of loss. The Tribunal had, therefore, delivered a common judgment rejecting the contention of the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ended by the learned advocate for the appellant that as this transaction was carried over, over seven settlement dates, this cannot be termed as single transaction. 10. In support of his contentions, the learned advocate relied upon the decisions of the Supreme Court as well as different High Courts. Reliance is placed on Commissioner of Income Tax vs. Sharwan Kumar Agarwal, (2007) 292 ITR 3 (SC), Commissioner of Income Tax vs. Mohanlal Ranchhoddas, 203 ITR 304 and in the case of Commissioner of Income Tax vs. Indian Commercial Co. P. Ltd., 106 ITR 465. 11. On the other hand, learned advocate for the respondent has opposed the contentions of learned advocate for the appellant-assessee. He further contended that these appeals require to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... verable at the same time either to the original vendor or to some one else, so as either to secure profit or to minimise loss, before the Vaida day; and similarly when he enters into a contract of sale, he simultaneously enters into one or more contracts to purchase the same quantity before the Vaida day. The result of such dealings, when the sale and purchase are to and from the same person, has the effect of cancelling the contracts leaving only differences to be paid (vide Tod vs. Lakshmidas Purushottamdas (1892) ILR 16 Bom. 441; Perosha Coursetji Parakh vs. Manekji Dossabhai Watcha (1898) ILR 22 Bom 899 and Sassoon vs. Tokersey Jadhawjee (1904) ILR 28 Bom 616). The principle enunciated in these cases is to the effect that there is a pos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itself" 14. Considering the facts of the case, we are of the view that the Assessing Officer was justified in treating the loss suffered by the assessee as business loss since it was a loss sustained in speculation business. In similar case, the Rajasthan High Court in the case of Commissioner of Income Tax vs. Shree Textiles, (1994) 206 ITR 345 had taken the view where the assessee had shown a loss of Rs. 16,426 in the cotton account and the entry was passed through the "Nakal Bahi' on the last date of the accounting year. This difference was paid on account of purchase and sale of 100 cotton bales which were through B. The Income-tax Officer held hat it was a speculation transaction and as such could not be adjusted against the busi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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