JUDGMENT judgment of court was delivered by R. Sudhakar J.-Aggrieved by order passed by Tribunal in dismissing appeal filed by it, appellant-Revenue is before this court by filing present appeal.This court, vide order dated June 25, 2008, admitted appeal on following substantial question of law: "Whether, on facts and in circumstances of case, Tribunal was right in holding that loss sustained in business can be set off against betting and gambling income and only net income is to be taxed under section 115BB?" facts, in nut-shell, are as follows: assessee is breeder and owner of race horses. For assessment year 2000-01, assessee claimed income from betting amounting to Rs. 18.02 crores. losses suffered by assessee under head "Business" were adjusted against other heads, including betting income and balance betting income was alone shown as being taxable at flat rate of 40 per cent. under section 115BB and other Central Board of Direct Taxes Circulars. Assessing Officer held that as per provisions of section 115BB, what is envisaged is total winning, and deduction of losses under other heads cannot be set off against it and, therefore, recalculated income under section 115BB on entire income from betting. Aggrieved against same, assessee preferred appeal before Commissioner of Income-tax (Appeals). issue was held in favour of respondent-assessee by Commissioner of Income-tax (Appeals) and, thereafter, by Tribunal, wherein, Tribunal held as follows: "Section 58(4) with its proviso clause does not apply to assessee's case, assessee being owner of horses maintained by him for running in horse races. On consideration of rival submissions we are of view that order of Commissioner of Income-tax (Appeals) is perfectly justified where assessee was allowed to adjust losses suffered under head business against income earned under other heads including betting income. Central Board of Direct Taxes Circular No. 721, dated September 13, 1995, also supports case. combined reading of section 115BB and proviso to section 58(4) along with Central Board of Direct Taxes Circular No. 721, dated September 13, 1995, fortify action of Commissioner of Income-tax (Appeals) and we see no justification to interfere with orders of Commissioner of Income- tax (Appeals) on this issue. Therefore, we decide this ground against Revenue and in favour of assessee." Aggrieved by abovesaid order passed by Tribunal, Revenue is before this court by filing present appeal. Heard Mr. Ravikumar, learned standing counsel appearing for appellant-Department and Dr. Anitha Sumanth, learned counsel appearing for respondent-assessee. It is fairly stated by learned counsel on either side that similar issue has been decided by this court in favour of appellant-Revenue in assessee's own case for assessment year 1998-99 in T. C. A. No. 649 of 2006, dated December 10, 2014 (CIT v. M. A. M. Ramaswamy (No. 1) [2015] 373 ITR 428 (Mad)). This court, while considering similar issue in case of very same assessee in above appeal, while analysing section 115BB and section 58(4) of Act held as follows (page 432): "Before adverting to merits of matter, it would be useful to have look at provisions referred to by Tribunal and authorities below. For better clarity, said sections are extracted hereunder: 58. Amounts not deductible.-... (4) In case of assessee having income chargeable under head'Income from other sources', no deduction in respect of any expenditure or allowance in connection with such income shall be allowed under any provision of this Act in computing income by way of any winnings from lotteries, crossword puzzles, races including horse races, card games and See [1995] 215 ITR (St.) 113. other games of any sort or from gambling or See [1995] 215 ITR (St.) 113. other games of any sort or from gambling or betting of any form or nature, whatsoever: Provided that nothing contained in this sub-section shall apply in computing income of assessee, being owner of horses maintained by him for running in horse races, from activity of owning and maintaining such horses. 115BB. Where total income of assessee includes any income by way of winnings from any lottery or crossword puzzle or race including horse race (not being income from activity of owning and maintaining race horses) or card game and other game of any sort or from gambling or betting of any form or nature whatsoever, income-tax payable shall be aggregate of- (i) amount of income-tax calculated on income by way of winnings from such lottery or crossword puzzle or race including horse race or card game and other game of any sort or from gambling or betting of any form or nature whatsoever, at rate of thirty per cent.; and (ii) amount of income-tax with which assessee would have been chargeable had his total income been reduced by amount of income referred to in clause (i). Explanation.-For purposes of this section "horse race" shall have same meaning as in section 74A.' Sub-section (4) of section 58 of Act was inserted by Finance Act, 1986, with effect from April 1, 1987, and purport of said amendment is to disallow any expenditure from winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort, or from gambling or betting of any form or nature, whatsoever which are deemed as income for purposes of levy of income-tax under section 2(24)(ix) of Act. By Finance Act, 1986, with effect from April 1, 1987, Legislature while inserting section 115BB of Act, thought it fit to delete section 74A(1) and section 74A(2) of Act. scope and effect of these amendments was explained by Board in Circular No. 461, dated July 9, 1986. relevant portion of said circular reads as under: 'Section 115BB of Act Provision of flat rate of tax on winnings from lotteries, crossword puzzles, races, including horse races, etc. See [1986] 161 ITR (St.) 17, 36. 31.1. Under existing provisions, any income by way of winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or from gambling or betting of any form or nature whatsoever is chargeable to tax under head 'Income from other sources' along with other income of assessee. By inserting new section 115BB in Income-tax Act, it has been provided that any income of casual and non-recurring nature of type referred to above, shall be charged to income-tax at flat rate of 40 per cent. This provision will, however, not apply to income from activity of owning and maintaining race horses. For this purpose, new sub-section has been added to section 58 to provide that no deduction shall be allowed in respect of any expenditure or allowance in computing income from aforesaid sources. What has to be borne in mind is that apart from general exemption of Rs. 5,000 under section 10(3), no further allowances or deductions are admissible against gross winnings except in cases where there is diversion by overriding title as in case of certain lotteries where certain percentage has to be foregone to Government/agency conducting lotteries. Consequential amendment has also been made in section 197(1)(a) of Income-tax Act. 31.2. These amendments will apply in relation to assessment year 1987-88 and subsequent years. Section 74A(1) and section 74A(2) Modification of provisions relating to losses from certain specified sources falling under head "Income from other sources". 32.1. As mentioned above, winnings from lotteries, crossword puzzles, races including horse races, card games, other games or from gambling or betting is chargeable to tax under head "Income from other sources". Section 74A(1) provides that losses from aforesaid sources will be allowed to be set off only against income from same source and losses not so set off relating to these sources incurred during year are not allowed to be carried forward for set off against any income of subsequent year. Under provisions of section 74A(3) of Act, however, losses arising from activity of owning or maintaining race horses for running in horse races are entitled to be carried forward and set off against income from source including horse races, in subsequent year. benefit of carry forward and set off of such losses is allowed for four assessment years next following assessment year for which loss was first computed. In view of insertion of new section 115BB in Act levying flat rate of tax on winnings from lotteries, crossword puzzles, races including horse races, etc., sub-sections (1) and (2) of section 74A of Act have been deleted. Sub-section (3) has been amended to provide that in case of taxpayer, being owner of horses maintained by him for running in horse races amount of loss incurred in activity of owning or maintaining such race horses in any assessment year shall not be set off against income, if any, from any other source and shall be allowed to be carried forward to four assessment years next following assessment year for which such loss was first computed for being set off against income, if any, from same activity. 32.2. These amendments will apply in relation to assessment year 1987-88 and subsequent years.' (emphasis supplied) bare reading of above circular and provisions makes it clear that section 115BB of Act envisages taxation at flat rate of 40 per cent. on total amount of winnings from betting, etc., and losses from same source also cannot be set off against such income. above view is fortified by Board Circular No. 14 of 2001, dated December 12, 2001, explaining intent of Legislature in amending section 115BB of Act by reducing rate of tax from 40 per cent. to 30 per cent. with effect from April 1, 2001, as amended by Finance Act, 2001, dated April 1, 2002. 'Tax on winnings from lottery, crossword puzzle, etc. 60.1. Under existing provisions of clause (i) of section 115BB, any income by way of winnings from any lottery or crossword puzzle or race including horse race (not being income from activity of owning and maintaining race horses) or card game and other game of any sort or from gambling or betting of any form or nature whatsoever, is chargeable to tax at rate of 40 per cent. 60.2. As measure of rationalisation, Act has reduced rate of tax on such winnings from forty per cent. to thirty per cent. 60.3. amendment will take effect from 1st April, 2002, and will, accordingly, apply in relation to assessment year 2002-03 and subsequent years.' (emphasis1 supplied) From above, it is clear that intent of Legislature, as measure of rationalisation, was to reduce rate of tax on such See [2001] 252 ITR (St.) 65, 111. winnings from 40 per cent. to 30 per cent., with effect from April 1, 2002. Even though said amendment is not applicable to case of hand, what can be deduced from same is fact that higher rate of tax as applicable to winnings from betting, etc., has been brought down to 30 per cent., on par with rate applicable for other incomes as measure of rationalisation. Therefore, intent of Legislature to levy tax at rate of 40 per cent. for relevant assessment year on winnings from betting, etc., is apparent as otherwise, very existence of said provision in Act would be meaningless. On careful perusal of above provisions of law and legislative intent, this court is not inclined to accept view as propounded by Tribunal and Commissioner (Appeals), as section 115BB of Act is standalone special provision, which makes it clear that income of assessee, not being income from activity of owning and maintaining race horses, would fall under section 115BB of Act. In view of specific provision contained in section 115BB of Act under Chapter XII of Act, which provides for determination of tax in certain special cases, special rate of tax is applicable for entire income of winnings from horse racing and should be subject to tax at special rate provided therein. It is not case of assessee that income being brought to tax is earned from owning and maintaining horses. Therefore, in our considered opinion, provisions of section 58(4) of Act will not come into play. methodology of computing tax on long-term capital gains visa-vis section 112 of Act for which assessee relied on Central Board of Direct Taxes Circular No. 721, dated September 13, 1995, though found favour with Commissioner of Income-tax (Appeals), this court is not inclined to accept same for simple reason that whenever tax is levied based on special provisions envisaged under Act, method of calculating tax has to be strictly in accordance with such provisions and not otherwise. If circular relied on by assessee is taken into consideration, then what is envisaged by statute would be given go-by and purport and intent of Parliament in enacting that special provision in statute would become futile exercise. Therefore, reliance placed on said circular by Commissioner of Income-tax (Appeals) as also by Tribunal is misconceived and does not stand legal scrutiny. Further, it is curious to note that Tribunal, in penultimate paragraph of its order, while observing that'section 58(4) with its proviso clause does not apply to assessee's case, assessee being owner of horses maintained by him for running in horse races', has held that the'A combined reading of section 115BB and proviso to section 58(4) along with Central Board of Direct Taxes Circular No. 721, dated September 13, 1995, fortify action of Commissioner of Income-tax (Appeals) and we see no justification to interfere with orders of Commissioner (Appeals) on this issue'. We are at loss to understand as to how Tribunal concurred with decision of Commissioner of Income-tax (Appeals), while making diametrically opposite observation that section 58(4) of Act is not applicable. We are, therefore, of considered view that total winnings from betting of assessee should be brought to tax at rate of 40 per cent. as contemplated under section 115BB of Act. order passed by Tribunal, which affirmed order of Commissioner of Income-tax (Appeals), is liable to be set aside. Accordingly, order passed by Tribunal is set is liable to be set aside. Accordingly, order passed by Tribunal is set aside." perusal of abovesaid decision reveals that issue as also facts in present appeal are identical to one as was decided by this court in case of very same assessee in abovesaid appeal, wherein, this court, while considering section 115BB and section 58(4) of Act, held matter in favour of Revenue, holding that section 115BB of Act will apply. In view of above, substantial question of law is answered in favour of Revenue and against assessee. Accordingly, appeal is allowed. However, in circumstances of case, there shall be no order as to costs. See [1995] 215 ITR (St.) 113. *** Commissioner of Income-tax v. Dr. M. A. M. Ramaswamy (No. 2)