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2015 (3) TMI 323 - HC - Income TaxSet-off of loss sustained in business against betting and gambling income - whether only the net income is to be taxed u/s 115BB? - assessee is a breeder and owner of race horses - Held that:- This Court is not inclined to accept the view as propounded by the Tribunal and the Commissioner (Appeals), as Section 115BB of the Act is a standalone special provision, which makes it clear that income of an assessee, not being income from activity of owning and maintaining race horses, would fall under Section 115BB of the Act. In view of the specific provision contained in Section 115BB of the Act under Chapter XII of the Act, which provides for determination of tax in certain special cases, the special rate of tax is applicable for the entire income of winnings from horse racing and should be subject to tax at the special rate provided therein. It is not the case of the assessee that the income being brought to tax is earned from owning and maintaining the horses. Therefore, in our considered opinion, the provisions of Section 58(4) of the Act will not come into play. We are, therefore, of the considered view that the total winnings from betting of the assessee should be brought to tax at the rate of 40% as contemplated under Section 115BB of the Act. The order passed by the Tribunal holding that the loss sustained in business can be set off against betting and gambling income and only the net income is to be taxed u/s 115BB, which affirmed the order of the Commissioner of Income Tax (Appeals), is liable to be set aside. Accordingly, the order passed by the Tribunal is set aside. - Decision of the assessee in its own case [2015 (1) TMI 439 - MADRAS HIGH COURT] followed - Decided in favour of assessee.
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