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Report No. 12

74. Losses in speculation business.-

Any loss computed in respect of a speculation business carried on by the assessee, shall not be set off except against profits and gains, if any, of another speculation business.

[Section 24(1), 1st proviso]

(2) Where for any assessment year any loss computed in respect of a speculation business has not been wholly set off under sub-section (1), so much of the loss as is not so set off or the whole loss where the assessee had no income from any other speculation business, shall, subject to the other provisions of this Chapter, be carried forward to the following assessment year, and-

(i) it shall be set off against the profits and gains, if any, of any speculation business carried on by him assessable for that assessment year; and

(ii) if the loss cannot be wholly so set off, the amount of loss not so set off shall be carried forward to the following assessment year and so on.

[Section 24(2), main para., part]

(3) In respect of allowance on account of depreciation or capital expenditure on scientific research, the provisions of sub-section (3) of section 73 [preceding section regarding set off etc. in non-speculation business] shall apply in relation to speculation business as they apply in relation to any other business.

[Section 24(2), proviso (b) part and section 10(2)(xiv), 2nd proviso (f) part.]

(4) No loss shall be carried forward under this section for more than eight assessment years immediately succeeding the assessment year for which the loss was first computed.

[Section 24(1), main para., part]



Income-Tax Act, 1922 Back




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