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TMI Blog1989 (2) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome from share dealings and dividend. The assessee during the year under appeal disclosed share loss of Rs. 12,90,145 for which delivery was taken by it. The speculative loss was shown at Rs. 7,95,447. The Income Tax Officer discussed the nature of the business of the assessee and indicated that it was a dealer in shares and it was not an investor. He, accordingly, came to the conclusion that the business loss shown by the assessee at Rs. 12,90,145 could be taken as speculative loss in view of Explanation to section 73 of the Income-tax Act, 1961. 3. The assessee went in appeal before the Commissioner of Income-tax (Appeals) and contended that it was an 'Investment Company' within the meaning of section 109(ii) of the Act and indicated t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld be maintained. 6. The assessee is a limited company and is a dealer in shares. The assessee-company disclosed share loss from business at Rs. 12,90,145 and loss in speculation was at Rs. 7,95,447. The net loss as per profit and loss account was at Rs. 28,50,358. Dividend income was shown at Rs. 3,87,603. There is some confusion about the computation of income made by the ITO. However, the real question is : whether the assessee was an investment company ? 'Investment Company' has been defined in section 109(ii) of the Act. According to that section, if the income of the limited company from interest on securities, from house property, capital gains and income from other sources is greater than the other income of the company, the compan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dicate the computation of loss. However, if the computation of income results in loss, the loss is also determined under the aforesaid sections. Therefore, the argument of the departmental representative that income includes, loss has a substance. 'Income' is defined in section 2(24) of the Act. The definition is inclusive--that means--the definition of 'income' is not very exhaustive and it has not been defined in a limited sphere. However, while levying income-tax and computing the income from different sources, the loss is determined and a right arises to avail the benefit of the same against the income of future years. The Legislature has restricted, wherever necessary that loss may not be available for set off or carry forward. Therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Under the said circumstances, the Hon'ble Supreme Court at page 338 observed as follows : " The question in the instant case is within a short compass. It can be accepted without much doubt that the income would include loss. " From the said observations given by the Hon'ble Supreme Court it is clear that the income includes loss and loss cannot be considered separately. 9. The definition of 'Investment company' under section 109(ii) speaks of income. It does not speak of any loss. However, the income only from business is computed under sections 28 to 43 which may result in a loss and, therefore, the loss so computed under sections 28 to 43 of the Act could not be given a different meaning. Consequently, in the present case, the findi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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