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2014 (2) TMI 943 - AT - Income TaxSetting off of speculation loss – Loss of earlier years to be set off against the profit of the same business – Held that:- CIT(A) was of the view that there has not been any change in the nature of the transactions during the year under consideration as compared to the preceding year - The nature of transactions in shares and securitìes as carried out by the appellant company is admittedly speculative –Relying upon CIT v. Soorajmall Baijnath Agencies (P) Ltd.[ 2004 (7) TMI 25 - CALCUTTA High Court ] - Section 73(2) prescribes that loss of the speculation business of a particular year can be carried forward to the subsequent previous year and be set off or be adjusted against the income of any speculation business of the said previous year – The loss of AY 2006-07 was allowed to be carried forward to be set off of subsequent years' speculation business profit against this speculation loss - In AY 2007-08, there is no objection on the part of the revenue – the revenue has treated this loss in AY 2006-07 as speculation loss arising out of the same business - the assessee is carrying on share trading activity in share business which is a speculation business in term of explanation to Section 73 of the Act – thus, there was no infirmity in the order of CIT(A) – Decided against Revenue. Rebate on account STT – Calculation of MAT u/s 115JB of the Act – Allowability of Rebate u/s 88E of the Act – Held that:- The decision in CIT Vs. M/s. Winro Commercial India Ltd [2013 (10) TMI 1223 - CALCUTTA HIGH COURT] and CIT Vs. M/s. Todi Securities (P) Ltd. [2013 (10) TMI 1223 - CALCUTTA HIGH COURT] followed - when the total income is assessed and the tax chargeable is computed, it is from that tax which is chargeable, the tax paid under Section 88E is given deduction, by way of rebate, under section 87 of the Act - This is the legislative intent - This is a promise to give deduction of the tax already paid - This is the mode in which tax already paid is handed back at the time of final computation – the order of the CIT(A) upheld – Decided against Revenue.
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