COMMISSIONER OF INCOME Vs. BHARTESH JAIN

JUDGEMENT

(1.) THE Revenue has preferred the present appeal under Section 260a of the income Tax Act, 1961 (hereinafter referred to as 'the Act') against the judgment dated 22/2/2008 passed by the Income Tax Appellate Tribunal (hereinafter referred to in short as "tribunal") in ITA/762/del/2006 pertaining to assessment year 1995-96.

(2.) IN order to dispose of this appeal the following facts require to be noticed: 2. 1 On 30. 10. 1995 the assessee had filed a return declaring his income as "nil". The assessee failed to satisfy the queries raised by the assessing Officer. The result was, that the Assessing Officer, completed the assessment under Section 144 of the Act. Consequently, assessee's income was assessed at Rs. 33,20,000/ -.

(3.) AFTER recording the course of events and the submissions of the assessee, the Assessing Officer vide order dated 21. 3. 2005 disallowed the set off of brought forward losses. In the said order the Assessing Officer noted the fact, that, in the assessment year 1994-95, that is, assessment year immediately preceding the year under consideration, the assessee's income had been treated as income from "speculation" and that the said decision of the Revenue had been sustained right till the Tribunal. The Assessing Officer concluded that since the assessee in his return of income for assessment year 1995-96 had shown his income as business income, a fact which the assessee had not denied, the assessee could not be allowed to set off brought forward losses of assessment year 1994-95 against the income for assessment year 1995-96.