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Commissioner of Income-tax, U.P. Vs. Gupta Bros. P. Ltd. - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtSupreme Court of India
Decided On
Judge
Reported in[1972]83ITR443(SC)
ActsIncome Tax Act - Sections 10
AppellantCommissioner of Income-tax, U.P.
RespondentGupta Bros. P. Ltd.
Cases ReferredJagannath Mahadeo Prasad v. Commissioner of Income
Excerpt:
direct taxation - speculative business sections 10 and 24 of income tax act, 1922 - assessee incurred loss in speculative business - not entitled to set off such loss towards profits earned by him in his other business of non-speculative nature in same accounting year. - - after hearing him, we are not satisfied that there is any ground for reconsidering that decision......previous year was from july 6, 1951, to june 24, 1952. following its earlier decision in jagannath mahadeo prasad v. commissioner of income-tax : [1965]55itr501(all) , the allahabad high court accepted the contention of the assessee that the set-off claimed by him is permissible. the decision in jagannath mahadeo prasad's case : [1965]55itr501(all) was overruled by this court in commissioner of income-tax v. jagannath mahadeo prasad : [1969]71itr296(sc) . hence, the decision under appeal cannot be sustained. mr. s. t. desai, learned counsel for the assessee, contended that the decision of this court in commissioner of income-tax v. jagannath mahadeo prasad : [1969]71itr296(sc) requires to be reconsidered. after hearing him, we are not satisfied that there is any ground for reconsidering.....
Judgment:

K.S. Hedge, J.

1. This is an appeal by certificate. The question for decision in this appeal is whether the assessee is entitled to set-off the loss of Rs. 21,881 incurred by him in speculative business towards the profits earned by him in his other businesses of non-speculative nature in the same accounting year. The relevant assessment year is 1953-1954 and the relevant previous year was from July 6, 1951, to June 24, 1952. Following its earlier decision in Jagannath Mahadeo Prasad v. Commissioner of Income-tax : [1965]55ITR501(All) , the Allahabad High Court accepted the contention of the assessee that the set-off claimed by him is permissible. The decision in Jagannath Mahadeo Prasad's case : [1965]55ITR501(All) was overruled by this Court in Commissioner of Income-tax v. Jagannath Mahadeo Prasad : [1969]71ITR296(SC) . Hence, the decision under appeal cannot be sustained. Mr. S. T. Desai, learned Counsel for the assessee, contended that the decision of this Court in Commissioner of Income-tax v. Jagannath Mahadeo Prasad : [1969]71ITR296(SC) requires to be reconsidered. After hearing him, we are not satisfied that there is any ground for reconsidering that decision.

2. In the result, this appeal is allowed and the answer given by the High Court to question No. 1 referred to it, namely, whether, on the facts of the case, the loss of Rs. 21,881 in Tata deferred (speculative transaction) is an admissible deduction in the determination of the net income, profits and gains from ' business ' under Section 10 of the Income-tax Act, is revoked and in its place we answer that question in the negative and in favour of the department. Under the circumstances of the case, we make no order as to costs in this appeal.


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