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2015 (10) TMI 594 - AT - Income TaxDenial of benefit of set off of the speculation loss - explanation to section 73 has to be applied on year to year basis and the set off of the loss cannot be allowed in the year in case the conditions laid down in the Explanation are not satisfied, irrespective of the fact that all the other circumstances when the Explanation to Section 73 was applied in A.Y. 2001-02 and that in A.Y. 2006-07 are same - Held that:- Once the assessee is carrying on a speculation business and the profits and gains have arisen from that business during the course of the assessment year, the assessee is entitled to set off the Losses carried forward from a speculation business arising out of a previous assessment year. Thus, applying this judgment of the jurisdictional High Court, the assessee is entitled for the set off of the impugned amount of amount of loss brought forward from assessment year 2001-02. No contrary judgment has been brought to our notice by the Ld. DR. Thus, respectfully following the judgment of Hon’ble Bombay High Court in the case of Lokmat Newspapers P. Ltd [2010 (2) TMI 94 - BOMBAY HIGH COURT] we decide this issue in favour of the assessee company. Thus, the AO is directed to allow the set off the brought forward loss. - Decided in favour of assessee. Disallowance of claim of bad debts - Held that:- The only objection of the authorities below was that the impugned amount was not allowable as deduction u/s 36(1)(vii). In our considered view the impugned amount is allowable to the assessee as business loss, in any case. We derive support from the judgment of Hon’ble Bombay High Court in the case of Harshad J Choksi vs CIT [2012 (8) TMI 710 - BOMBAY HIGH COURT]. Thus we hold that bad debts is allowable to the assessee as business loss having been incurred in the normal course of trading of shares.- Decided in favour of assessee.
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