TMI Blog2001 (10) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... 1982-83, though the income from sources for the relevant previous years exceeded the income from the business of dealing in shares?" The assessment year is 1982-83 and the previous year ended on December 31, 1981. The Assessing Officer while making the assessment under section 143(3) of the Income-tax Act for the assessment year 1982-83 observed that the assessee's principal business was dealing in shares. The Assessing Officer observed that on December 31, 1980, the assessee had taken on lease the house properties from Woodland Oil Company and S. Valotia and Brothers for office premises at an annual rental of Rs.22,966 and Rs.1,980, respectively, as tenant. A part of such properties was sublet to Thomas Duff Company Ltd. The annual r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer for the assessment year 1982-83 comprises two sums- (i) Speculation loss from share dealing of Rs.4,50,779 ; and (ii) income from 'other sources' at Rs.24,000. It is not known on what basis the Commissioner of Income-tax (Appeals) observed that the assessee is an 'investment company' in terms of section 109(ii). In our opinion, from the facts found by the authorities below, the only irresistible conclusion that can be drawn is that the assessee does not satisfy the conditions envisaged in section 109(ii) as its gross total income computed for the assessment year 1982-83 is not comprised mainly of income chargeable under the heads 'Interest on securities', 'Income from house property', 'Capital gains', and 'Income from other sourc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany in the year under reference is an investment company within the meaning of section 109(ii) of the Act and whether the Explanation to section 73 of the Act is applicable. The dispute is fully covered by a judgment of this court reported in Eastern Aviation and Industries Ltd. v. CIT [1994] 208 ITR 1023, which observes as follows: "It is by now well-settled that the words 'income' or 'profits and gains' should be understood as including losses also so that in one sense 'profits and gains' represent 'positive income' whereas 'losses' represent 'negative income'. In other words, 'loss' is 'negative profit'. Both positive and negative profits are of revenue character. Both must enter into computation, wherever it becomes material, in ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
