USHA POLITEX LTD Vs. INCOME-TAX OFFICER

JUDGEMENT

(1.) HEARD Sri Rakesh Ranjan Agrawal, counsel for the petitioner and Sri R.K. Upadhyay, Senior Standing Counsel, for the Revenue.

(2.) THE aforementioned writ petitions have been filed for quashing the notices issued by Assessing Officer (respondent -1) under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as the Act) and under Section 142 (1) of the Act, initiating proceedings for re -assessment against the petitioner. Writ - Tax No. 1554 of 2005 is related to the Assessment Year 1998 -1999, Writ -Tax No. 1555 of 2005 is related to the Assessment Year 2000 -2001 and Writ -Tax No. 1556 of 2005 is related to the Assessment Year 1999 -2000. In these writ petitions common questions of law and fact are involved between the same parties as such the writ petitions are consolidated and heard together and are being decided by a common judgment. In this judgment fact relating to the Writ -Tax No. 1554 of 2005 are being noticed.

(3.) WE have considered the respective arguments of the counsel for the parties and perused the record. Only controversy arises in these writ petition is as to whether the petitioner is entitled to set off the losses of the business in share trading activities under Section 73 of the Act. In order to appreciate the controversy Section 73 (as it existed prior to it's amendment by Act No. 18 of 2005 w.e.f 01.04.2006) is quoted below: