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2013 (8) TMI 552 - AT - Income TaxSet off of business losses - setoff of business losses with speculation gains - Held that:- The restriction set out in section 73 relates only to losses of speculation business being set off against profits of non speculation business, but not vice-versa. Therefore, in the absence of specific restriction on set off of normal business losses against profits of speculation business, the same cannot be inferred or assumed. Similar is the position with regard to set off of speculation losses against non speculation profits. Section 72(1) provides that non speculation business loss can be set off against "profits and gains, if any, of any (emphasis supplied by us) business or profession" carried on by assessee and assessable in that assessment year, and when it cannot be so set off, it shall be carried forward to the following assessment year. The expression "any" business clearly includes all businesses, without making any distinction between speculation and non-speculation business, and, therefore, going by the plain language of the statutory provision losses in a business, other than in speculation business, can be set off against profits of speculation business as also non speculation business - Decided in favour of assessee.
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