In arriving at the figure of the total income, the Income tax Officer disallowed loss amounting to Rs.
73,348/ The above third item of loss is arrived at by the Income tax Officer after adjusting the profit of the forward business in groundnut seeds at Rajkot.
From the Judgment and Order dated 8 9 1970 of the Gujarat High Court in Income tax Reference No.
Whether on the facts and in the circum stances of the case, the assessee was entitled to carry forward the speculation loss of Rs.
It will appear that the break up of losses in the busi ness of illegal forward companytracts is as follows 1 Groundnut oil Account Rs.
however, bifurcated the loss into two categories as follows 1 Loss incurred in hedging transactions in the banned items Rs.331,745/ Loss incurred in speculative tran sactions other than hedging transac tions in the banned items.
2,11,431/ .
580 of 1972.
22,522/ Singdana Groundnut seeds Account at Veraval Rs.
73,348/ in forward companytracts in groundnut oil, ground nuts and groundnut seeds.
41603/ to the next year ?
1,162/ Total Rs.
1,71,632/ .
CIVIL APPELLATE JURISDICTION Civil Appeal No.
31745/ against other profits of the previous year ?
His total income for the year in question was determined by the Income tax Officer as Rs.
The following facts appear from the statement of case and the order of the Tribunal The assessment year in question is 1957 58 and the companyresponding previous year is the Samvat year 2012.
L. Hathi and P.C. Kapoor, for the respondent.
are as follows Whether, on the facts and in the circumstances of the case, the assessee was entitled to set off hedging.
B. Ahuja and R.N. Sachthey, for the Appellants.
The two questions which were earlier referred by the Tribunal to the High Court at the instance of the Commis sioner of Income tax, Gujarat III.
The assessee is carrying on business by running an oil mill, and also doing business in sales and purchase of groundnuts, groundnut seeds and oil speculation business in groundnuts, groundnut oil and groundnut seeds and speculation business in companyton, errands, etc.
This was after allowing set off of loss brought forward from the year 1955 56 amounting to Rs.
9/68 .
He disallowed this loss on the ground that it arose out of illegal companytracts on account of the same being banned Under section 15 4 of the Forward Contracts Regulation Act, 1952.
49,664/ Groundnut Account Rs.
The Judgment of the Court was delivered by GOSWAMI, J. This appeal by certificate is from the judgment of the Gujarat High Court in an Income tax Refer ence under section 66 1 of the Indian Income tax Act, 1922 briefly the Act .
loss of Rs.
