M/s. Neeraj Consultants Ltd. v. Commissioner of Income-tax IV, Kolkata - 2014-LL-0724-44

Citation	2014-LL-0724-44
Appellant Name	M/s. Neeraj Consultants Ltd.
Respondent Name	Commissioner of Income-tax IV, Kolkata
Court	HIGH COURT OF CALCUTTA
Relevant Act	Income-tax
Date of Order	24/07/2014
Judgment	View Judgment
Keyword Tags	speculation loss • house property • capital gain
Bot Summary:	The Court : Mr. Dutta, learned Advocate appearing for the appellant very fairly drew our attention to the fact that the assessee had suffered speculation loss of Rs.4,81,86,684/-. He confined his submission to the fact that the assessee had income under the heading capital gain amounting to Rs.8,280/- and from out of the house property amounting to a sum of Rs.68,886/-. He submitted that the appellant has or may have a chance to succeed provided his case can be brought within the explanation appearing under sub-section of Section 73 of the Act. He drew our attention to a judgment of this case in the case of CIT, West Bengal vs. Middleton Investment 2 Trading Co. Ltd. wherein this Court had occasion to consider the meaning of the words consists mainly appearing from explanation under sub-Section of Section 73. In the present case, the income earned by the assessee under the head capital gain or under the head from house property is far outweighed by the loss suffered in speculation. There is, as such, no scope to apply the explanation under sub- section of Section 73 of the Income Tax Act.

ITA No.407 of 2007 IN HIGH COURT AT CALCUTTA Special Jurisdiction (Income Tax) ORIGINAL SIDE M/S.NEERAJ CONSULTANTS LTD. -Versus- COMMISSIONER OF INCOME TAX IV, KOLKATA BEFORE: Hon'ble JUSTICE GIRISH CHANDRA GUPTA Hon'ble JUSTICE SUDIP AHLUWALIA Date : 24th July, 2014. Appearance: Mr. R.N. Dutta, Adv. Ms. Sutapa Roy Chowdhury, Adv. ...for appellant. Mr. P. Dudheria, Adv. ...for respondent. Court : Mr. Dutta, learned Advocate appearing for appellant very fairly drew our attention to fact that assessee had suffered speculation loss of Rs.4,81,86,684/-. He confined his submission to fact that assessee had income under heading capital gain amounting to Rs.8,280/- and from out of house property amounting to sum of Rs.68,886/-. He submitted that appellant has or may have chance to succeed provided his case can be brought within explanation appearing under sub-section (4) of Section 73 of Act. He drew our attention to judgment of this case in case of CIT, West Bengal vs. Middleton Investment & 2 Trading Co. Ltd. (ITA No.196 of 1999) wherein this Court had occasion to consider meaning of words consists mainly appearing from explanation under sub-Section (4) of Section 73. In present case, income earned by assessee under head capital gain or under head from house property is far outweighed by loss suffered in speculation. There is, as such, no scope to apply explanation under sub- section (4) of Section 73 of Income Tax Act. For aforesaid reasons, appeal is dismissed. (GIRISH CHANDRA GUPTA, J.) (SUDIP AHLUWALIA, J.) A/s. M/s. Neeraj Consultants Ltd. v. Commissioner of Income-tax IV, Kolkata

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