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TMI Blog1971 (3) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of the court was delivered by H.N.SETH J.- The Income-tax Appellate Tribunal, Delhi Bench "B", has-referred the following questions of law for the opinion of this court, at the instance of the Commissioner of Income-tax, Lucknow. The questions are : "(1) Whether, on the facts and in the circumstances of the case, the loss of Rs. 38,026 suffered by the assessee was speculation loss? (2) I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year 1960-61. The assessee claimed that these losses represented liquidated damages and were liable to be set off as against the profits earned by it during the year from ready business. The department, however, claimed that these were speculation losses which could be adjusted against the profits of speculation business. The Income-tax Officer rejected the contention of the assessee and declined ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for could not be effected and that it was worked out on the basis of difference between the contract price and the prevailing market price. According to Explanation 2 to section 24(1) of the Income-tax Act, 1922, speculative transaction means a transaction in which a contract for purchase and sale of any commodity including stocks and shares is periodically, or ultimately settled otherwise than ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the income, profits and gains tinder section 10(1) of the Indian Income-tax Act. In view of this decision, the decision of this court in I.T.R. No. 777 of 1961 is no more good law. In the circumstances, we answer the first question in the affirmative and the second question in the negative. The Commissioner of Income-tax is entitled to his costs which we assess at Rs. 200. Counsel's fee is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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