Amount of loss incurred by the assessee in the activity of owning and maintaining race horses - Definition / Legal Terminology - Income Tax

Explanation - For the purposes of sub-section (3) of section 74A of the Income tax Act 1961 - Amount of loss incurred by the assessee in the activity of owning and maintaining race horses means- (i) in a case where the assessee has no income by way of stake money, the amount of expenditure (not being in the nature of capital expenditure) laid out or expended by him wholly and exclusively for the purposes of maintaining race horses ; (ii) in a case where the assessee has income by way of stake money, the amount by which such income falls short of the amount of expenditure (not being in the nature of capital expenditure) laid out or expended by the assessee wholly and exclusively for the purposes of maintaining race horses ;