JUDGMENT
D.K. Seth, J.
1. The assessee has a business in iron and steel. He had also a speculation business in which certain loss was incurred but the same could not be adjusted or set off against any income of any other speculation business in that year, namely 1996-97. This speculation loss was carried forward and was adjusted against an income from speculation business for the year 1997-98. Learned counsel for the appellant pointed out that in view of Sub-section (1) of Section 73, this speculation loss could be set off against an income from another speculation business not from the same business.
2. The submission of learned counsel is fallacious. Inasmuch as Sub-section (1) of Section 73 prescribes that loss in a speculation business can be set off or adjusted against income of another speculation business in respect of the concerned previous year. There is no question of adjustment or set off of the loss of the particular previous year against an income of the same speculation business of that year. In one speculation business in one previous year, there cannot be income and loss together ; either there would be income or there would be a loss, which can be set off or adjusted against the income from another speculation business in the concerned previous year. Sub-section (2) of Section 73 prescribes that loss of the speculation business of a particular previous year can be carried forward to the subsequent previous year and be set off or be adjusted against the income of any speculation business of the previous year following. The word “any” used in Sub-section (2) of Section 73 is inclusive. It can be set off or adjusted against the income of the same speculation business or against the income of any other speculation business carried on by the assessee in the following assessment year.
3. In this case, Sub-section (1) of Section 73 does not apply. This is a case which comes within the purview of Sub-section (2) of Section 73 under which this speculation loss of the previous year 1996-97 could be brought forward in the year following, viz., 1997-98, and be set off against the income from any speculation business which includes the same speculation business but carried on in the year following (1997-98) against which the loss for the year 1996-97 could be set off.
4. The income-tax authority, therefore, appears to have rightly decided the issue. No substantial question of law arises in this case. The appeal is dismissed.
5. All parties are to act on a signed xerox copy of this dictated order on the usual undertaking.
R.N. Sinha J.
6. I agree.