TMI Blog2014 (1) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... am (Maurya),JJ. For the Petitioner : Rakesh Ranjan Agrawal, Suyash Agrawal For the Respondent : C.S.C.,R.K. Upadhyay ORDER 1. Heard Sri Rakesh Ranjan Agrawal, counsel for the petitioner and Sri R.K. Upadhyay, Senior Standing Counsel, for the Revenue. 2. The aforementioned writ petitions have been filed for quashing the notices issued by Assessing Officer (respondent-1) under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as the Act) and under Section 142 (1) of the Act, initiating proceedings for re-assessment against the petitioner. Writ-Tax No. 1552 of 2005 is related to the Assessment Year 1999-2000, Writ-Tax No. 1553 of 2005 is related to the Assessment Year 2000-2001 and Writ-Tax No. 1559 of 2005 is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the reasons recorded for initiating the proceedings for reassessment. However notice dated 29.07.2005 has been issued without supplying the reasons. Subsequently reasons were supplied through letter dated 30.08.2005. The reasons in substance are that the business of the petitioner was to earn income from interest on advances and loans. Share trading activities of the petitioner was 'speculative business' as such loss of Rs. 3,00,000/- in share trading activities are not liable to be adjusted towards profits of business of the company. The petitioner in his return has illegally adjusted this amount. Accordingly income to the tune of Rs. 3,00,000/- was escaped assessment. The petitioner has challenged the notices on the ground that Explanat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... following assessment year and so on. (3) In respect of allowance on account of depreciation or capital expenditure on scientific research, the provisions of sub-section (2) of Section 72 shall apply in relation to speculation business as they apply in relation to any other business. (4) No loss shall be carried forward under this section for more than eight assessment years immediately succeeding the assessment year for which the loss was first computed. Explanation.--Where any part of the business of a company other than a company whose gross total income consists mainly of income which is chargeable under the heads "Interest on securities", "Income from house property", "Capital gains" and "Income from other sources", or a company ..... X X X X Extracts X X X X X X X X Extracts X X X X
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