The Special Bench of the Tribunal in Concord Commercials (P.) Ltd.’s case (supra) has held that the business loss being negative profit cannot be ignored in determining the applicability of exception clause of Explanation to section 73. [Para 16]
Similarly, in Yucca Finvest (P.) Ltd.’s case (supra), the Tribunal has held that the word `chargeable’ used in Explanation to section 73 would refer to charge ability to tax under the Act. This would only mean that loss may not be charged to tax directly in the current year. But by adjustment against other business income in that year or in following years, it reduces the other income on which tax is levied. Hence, negative income, i.e., loss is as equally chargeable to tax as positive income. [Para 17]
Thus, taking into consideration all relevant facts of the instant case and the decisions of Yucca Finvest (P.) Ltd. (supra) and Concord Commercial (P.) Ltd. (supra), it was to be held that the loss in trading of shares was a speculation loss and merely because it was a negative income, i.e., loss, could not be ignored in determining the applicability of exception clause of Explanation to section 73. [Para 18]
