COMMISSIONER OF INCOME TAX Vs. ASHOK MITTAL

JUDGEMENT

(1.) The revenue has proposed the following questions, stated to be substantial questions of law, in this appeal filed under section 260A of the Income Tax Act, 1961:-

(2.) The appeal arises out of the order passed by the Income Tax Appellate Tribunal on 11.5.2012 in ITA No.4196/Del/2011 relating to the assessment year 2000-01. In the return filed on 31.10.2000, the assessee set off the brought forward loss from speculation business quantified at Rs. 14,43,625/- and Rs. 75,39,186/- for the assessment years 1999-2000 and 1998-1999 respectively against the current year's speculation profit of Rs. 1,46,56,512/-. In the assessment order passed under section 143(3) on 31.3.2003, the AO disallowed the set off claimed by the assessee on two grounds. The first ground was that the assessment orders for the assessment years 1999-2000 and 1998-1999 were silent on the issue of carry forward of the speculation losses. The second ground was that the assessee did not furnish the particulars of share trading so as to arrive at the true profits from the speculation business in the current or earlier years.

(3.) On appeal the CIT(Appeals) by order dated 14.8.2007 directed the AO to allow the set off of the speculation losses of the assessment years 1998-1999 and 1999-2000 against the speculation profits for the assessment years 2000-2001 as claimed by the assessee.