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2013 (10) TMI 648 - AT - Income TaxClaim of Set off of the brought forward business loss – Whether Loss of Speculative Business Losses could be set off against the Income from Non-speculative Business – Held that:- The law in the matter is clear, and the loss of a speculative business, whether brought forward or for the current year, could not be set off against the non-speculative business income for the current year - The speculative transactions carried out by the assessee constitute a business in itself, and toward which we may refer to Explanation 2 to section 28 of the Act - it is only the loss as assessed that can be claimed for being brought forward and set off - It is only the business loss/es as returned and admitted for the earlier years that would qualify for being brought forward and, set off against the current year's income. The A.O. is directed to examine the assessee's claim for a part of the business income for the current year as arising out of its speculation business - subject to the necessary verification and findings by the assessing authority, we direct a set off in terms of section 73 r/w s. 80 of the Act - The onus to prove its claim would be on the assessee – Decided Partly in favour of Assessee.
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