(1.) The Revenue is in appeal against the judgment of the Income-tax Appellate Tribunal ("the Tribunal" for short), dated November 20, 2009, raising the following questions for our consideration:
(2.) Briefly stated the facts are that the respondent-assessee is in the business of trading of shares. It also has other sources of income. For the assessment year 2000-01, the assessee claimed the loss of Rs. 10.35 lakhs to be set off against other incomes. The Assessing Officer was of the opinion that in terms of section 73 of the Income-tax Act, 1961 ("the Act" for short), the loss being speculative in nature could not be set off against other income. The assessee contended that the provisions of section 73 would not apply nor would the Explanation contained in the said section bring the assessee within the sweep of sub-section (1) of section 73.
(3.) It was pointed out that the assessee's gross total income included the income from interest of Rs. 13.48 lakhs (rounded off) against the trading loss of shares of Rs. 10.35 lakhs. When the Assessing Officer did not accept such contention and disallowed the claim, the assessee preferred the appeal. The Commissioner of Income-tax (Appeals) rejected the assessee's appeal upon which further appeal came to be filed before the Tribunal. The Tribunal reversed the decision of the Revenue authorities making the following observations: