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Calcutta High Court

M/S. Brabourne Investments Ltd vs C.I.T on 6 April, 2015

Author: Girish Chandra Gupta

Bench: Girish Chandra Gupta

                                  IN THE HIGH COURT AT CALCUTTA
                                     Special Jurisdiction (Income Tax)
                                              Original Side

             Present :
The Hon'ble Justice Girish Chandra Gupta
               And
The Hon'ble Justice Arindam Sinha
         6th April, 2015


                                                              ITA 330 of 2008

                                                        M/s. Brabourne Investments Ltd.
                                                                    Vs.
                                                         C.I.T, Kolkata-II, Kolkata




                                  Mr. A.K. Dey, Advocate for the appellant

                                  Mr. P. Dudhoria, Advocate for the respondent

The Court :- The following questions of law were formulated at the time of admission of the appeal pertaining to the Assessment Year 2003-04.

"I. Whether the Explanation to Section 73 which creates a legal fiction by which the purchase and sale of shares specified in the said Explanation which is specifically used for the purpose of section 73 as deemed speculation business can be applied to sections 70, 71 and 72 and in determining the gross total income in the said Explanation to section 73 can at all be applied while considering the set off of loss under Section 70 and 71 and carry forward of such loss under section 72 of the Act ?

II. Whether in determining the set off and carry forward of losses arising from the business of dealing in shares, the Explanation to Section 73 can at all be relied upon and/or made applicable ?

III. Whether the loss arising from the business of dealing in shares not falling under the definition of speculative transaction appearing in section 43(5) of the Act can be carried forward under section 72 of the Act and whether in such a case the said claim can be disallowed by relying upon Section 73 of the Act ?"

Mr. Dey, learned Advocate appearing for the appellant submitted that all the questions have been answered against the assessee by this Court in ITA 190 of 2007 (M/s. RPG Industries Ltd. vs. CIT). Since all the questions are answered against the assessee the appeal is dismissed.

Let a copy of the judgment in the case of M/s. RPG Industries Ltd. vs. CIT be kept on record.

(Girish Chandra Gupta, J.) (Arindam Sinha, J.) ANC.