TMI Blog2013 (10) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... e business loss/es as returned and admitted for the earlier years that would qualify for being brought forward and, set off against the current year's income. The A.O. is directed to examine the assessee's claim for a part of the business income for the current year as arising out of its speculation business - subject to the necessary verification and findings by the assessing authority, we direct a set off in terms of section 73 r/w s. 80 of the Act - The onus to prove its claim would be on the assessee – Decided Partly in favour of Assessee. - I.T.A. No. 2325/Mum/2012 - - - Dated:- 14-10-2013 - Shri D. Manmohan, VP And Shri Sanjay Arora, AM,JJ. For the Appellant : Shri S. C. Tiwari Ms. Natasha Mangat For the Respondent : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tunity of hearing to the assessee on her showing a prima facie case, i.e., in terms of assessed business loss for the earlier years, which is as under: Assessment Year Amount (in Rs.) A.Y. 2000-01 5,06,753/- A.Y. 2001-02 22,50,918/- A.Y. 2002-03 59,326/- A.Y. 2003-04 6,46,793/- Total 34,63,790/- In the set aside proceedings, the A.O. declined to admit the assessee's claim of the brought forward loss as being in fact comprised of non-speculative business loss as well, furnishing the details/break-up as under (refer PB pg. 314): Details of trading (delivery) profit/(loss) and speculation profit/loss as per trading, profit loss account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 73 of the Act, placing the said embargo, was adverted to, being clear and patent in its intent and scope. Aggrieved, the assessee is in second appeal. 3. We have heard the parties, and perused the material on record. The law in the matter is clear, and the loss of a speculative business, whether brought forward or for the current year, could not be set off against the non-speculative business income for the current year. The speculative transactions carried out by the assessee constitute a business in itself, and toward which we may refer to Explanation 2 to section 28 of the Act. Again, it is only the loss as assessed that can be claimed for being brought forward and set off, and it is not, therefore, open for the assessee to contend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence. The A.O. is, accordingly, directed to examine the assessee's claim for a part of the business income for the current year as arising out of its speculation business. If and to the extent the business profit for the current year is from the speculation business, the set off of brought forward business loss (speculative) would be valid, of course, to that extent. Accordingly, subject to the necessary verification and findings by the assessing authority, we direct a set off in terms of section 73 r/w s. 80 of the Act. The onus to prove its claim on facts, we may clarify, would be on the assessee. We decide accordingly. 4. In the result, the assessee's appeal is partly allowed on the aforesaid terms. Order pronounced in the open cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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