TMI Blog1979 (5) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... court was delivered by UNTWALIA J.-- These six appeals have been heard together as a common question of law in relation to the assessment of the same assessee arises in them. Civil Appeals Nos. 2716-2718 of 1972 relate to the assessment years 1964-65, 1965-66 and 1966-67. The assessee-appellant is a registered firm carrying on business at several places in the State of Kerala. Apart from its regular trade in various commodities, the assessee was also carrying on a business in speculation. Apropos the speculation business of the assessee the ITO determined a loss of Rs. 40,510, a loss of Rs. 598 and a profit of Rs. 1,36,264 for the assessment years 1964-65, 1965-66 and 1966-67, respectively. In apportioning the assessee's income amongst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to have its losses in speculation business carried forward for set off against future profits in speculation business ? " The High Court of Kerala on a consideration of the relevant provisions of the Act contained in Chap. VI has answered the reference in favour of the revenue and against the assessee. The decision of the High Court is reported in M. O. Devassia Co. v. CIT [1973] 90 ITR 525 (Ker). Civil Appeals Nos. 2716 to 2718 of 1972 have been filed in this court by special leave. Identical questions arose in respect of the assessment years 1967-68, 1968-69 and 1969-70. The High Court answered the references made in respect of those three years also against the assessee by its judgment and order dated the 24th May, 1977. Civil Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion business.--(1) Any loss, computed in respect of a speculation business carried on by the assessee, shall not be set off except against profits and gains, if any, of another speculation business. (2) Where for any assessment year any loss computed in respect of a speculation business has not been wholly set off under sub-section (1), so much of the loss as is not so set off or the whole loss where the assessee had no income from any other speculation business, shall, subject to the other provisions of this Chapter, be carried forward to the following assessment year, and-- (i) it shall be set off against the profits and gains, if any, of any speculation business carried on by him assessable for that assesssment year ; and (ii) if ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be made and they alone are entitled to have the amount of the loss set off and carried forward for set off under s. 73. The matter is put beyond any pale of doubt and challenge in sub-s. (2) of s. 75 when it says that nothing contained in sub-s. (2) of s. 73 shall entitle any assessee, being a registered firm, to have its loss carried forward and set off under the provisions of s. 73(2). The Tribunal and the High Court, therefore, were right in holding that the ratio of the decision of this court in Kantilal Nathuchand's case [1967] 63 ITR 318 (SC) cannot be applied in respect of the assessments made under the Act. Identical views have been expressed by the High Court of Gujarat in CIT v. Dhanji Shamji [1974] 97 ITR 173 and the High Court o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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