Section 73 of the Income Tax Act

Income-tax Act, 2025: s.113

Section 73 of the Income-tax Act, 1961 corresponds to section 113 (Set off and carry forward of losses computed in respect of speculation business) of the Income-tax Act, 2025.

Read section 113 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 73 is 3. CIT v. ASHOK KUMAR SONI (262 ITR 633), cited in 101 of the 521 judgments on BharatTax that turn on this section.

Leading authorities on Section 73

3. CIT v. ASHOK KUMAR SONI
262 ITR 633 · 2003 · High Court
101
citing judgments

This case is cited for the proposition that oral admissions made during the course of a search can be considered as evidence.

CIT v. DLF Commercial Developers Ltd.
35 Taxmann.com 280 · 2013 · High Court
51
citing judgments

Loss incurred by certain types of companies in trading derivatives is considered speculative loss under the Explanation to Section 73, as the value of stock derivatives depends on shares. Such speculative losses are ineligible for set-off or carry forward against business income.

Ravindranathan Nair v. CIT
247 ITR 178 · 2001 · Supreme Court
42
citing judgments

The Income Tax Appellate Tribunal is the final fact-finding authority. A High Court can only interfere with the Tribunal's factual findings if a specific question alleging perversity of such findings, in the sense that they could not have been reasonably arrived at, has been referred to it.

M/s Liberty India Vs. CIT 225 CTR 233(SC), CIT v. Sterling Foods
227 ITR 557 · 1997 · Supreme Court
32
citing judgments

Income from a deferred VAT rebate granted by a state government for sales tax incentives is not considered income derived from an industrial undertaking and is therefore not eligible for deduction under Section 80IC.

CIT v. Darshan Securities (P) Ltd.
341 ITR 556 · 2012 · High Court
27
citing judgments

A company involved in the purchase and sale of shares is deemed to be carrying on a speculative business to the extent of such transactions, unless it falls under an exception to Section 73 of the Income Tax Act.

Patnaik & Co. Ltd. v. CIT
161 ITR 365 · 1986 · Supreme Court
26
citing judgments

Losses arising from the sale of investments made for business purposes are treated as business losses, not capital losses.

CIT v. VGR Foundations
298 ITR 132 · 2008 · High Court
21
citing judgments

Interest earned by a company on share application money deposited in banks is taxable as income from other sources, even if the funds are intended for the business.

Snowtex Investment Limited v. PCIT
414 ITR 227 · 2019 · Supreme Court
16
citing judgments

The Supreme Court held that losses from delivery-based share trading cannot be set off against profits from derivatives trading if the principal business of the assessee is not the granting of loans and advances, as per the explanation to Section 73.

TRF Ltd. v. CIT
323 ITR 167 · Reported
12
citing judgments

After April 1, 1989, it is sufficient to write off a debt as irrecoverable in the books to claim a bad debt deduction; it is not necessary to establish that the debt has become irrecoverable.

CIT v. HSBC Securities and Capital Market India Private Limited
208 Taxmann 439 · 2012 · High Court
10
citing judgments

Judgments on Section 73

Babulal Khetawat, Kolkata vs. ACIT, Cir-43, Kol, Kolkata

ITA 427/KOL/2023[2016-17]Status: DisposedITAT Kolkata16 Nov 2023AY 2016-17

Bench: Shri Sanjay Garg & Dr. Manish Boradi.T.A No.427/Kol/2023 Assessment Year: 2016-17 Babulal Khetawat....……………...................................................……Appellant 143/1/1, Cotton Street, Burrabazar, Kolkata-700007. [Pan: Afcpk7938N] Vs. Acit, Circle-43, Kolkata..............................……........……...…..…..Respondent Appearances By: Shri Rajiva Kumar, Ar, Appeared On Behalf Of The Appellant. Shri Umakanta Dhrupati, Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : September 19, 2023 Date Of Pronouncing The Order : November 16, 2023 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 06.03.2023 Of The National Faceless Appeal Centre (Hereinafter Referred To As The ‘Cit(A)’) Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Assessee In This Appeal Has Taken The Following Grounds Of Appeal: “1. That Under The Facts & Circumstances Of The Case, The Ld. Cit(A) Erred In Confirming Disallowance Of Interest Expenditure Of Rs.51,83,279/- Made By The A.O In Terms Of Section 57 Of The Income Tax Act, 1961. The Disallowance Is Unjustified & Needs To Be Deleted. 2. The Assessee Craves Leave To Add, Alter, Amend Or Withdraw Any Ground Or Grounds Of Appeal Before Or At The Time Of Hearing.”

Section 250Section 37Section 57Section 73

ACIT, Circle - 6(2), Kolkata vs. M/S. Nagreeka Synthetics Pvt. Ltd., Kolkata

In the result, the appeal of the revenue is allowed for statistical purposes and the cross-objection by the assessee are dismissed

ITA 427/KOL/2019[2009-10]Status: DisposedITAT Kolkata09 Nov 2023AY 2009-10

Bench: Shri Sanjay Garg, Hon’Ble & Dr. Manish Borad, Hon’Blei.T.A. No. 427/Kol/2019 Assessment Year: 2009-10 Asst. Commissioner Of Income Tax, M/S. Nagreeka Synthetics Pvt. Ltd. Circle-6(2), Kolkata Vs 6Th Floor, Jain Chamber 18, R.N. Mukherjee Road Kolkata - 700001 [Pan : Aaacn8691D] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) C.O. No. 19/Kol/2021 Assessment Year: 2009-10 M/S. Nagreeka Synthetics Pvt. Ltd. Asst. Commissioner Of Income 6Th Floor, Jain Chamber Vs Tax, Circle-6(2), Kolkata 18, R.N. Mukherjee Road Kolkata - 700001 [Pan : Aaacn8691D] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri S.D. Verma, Advocate Revenue By : Shri Abhijit Kundu, Cit D/R सुनवाई क" तारीख/Date Of Hearing : 05/09/2023 घोषणा क" तारीख /Date Of Pronouncement: 09/11/2023 आदेश/O R D E R Per Dr. Manish Borad: The Present Appeal Is Directed At The Instance Of The Revenue Against The Order Of The Learned Commissioner Of Income Tax (Appeals)- 4, Kolkata (Hereinafter The “Ld. Cit(A)”) Dt. 21/06/2018, Passed U/S 250 Of The Income Tax Act, 1961 (“The Act”) For The Assessment Year 2009- 10. The Assessee Has Filed A Cross-Objection Being C.O. No. 19/Kol/2021. 2. The Registry Has Pointed Out That There Is A Delay Of 965 Days In Filing The Cross-Objection By The Assessee. The Assessee Has Filed A 2

For Appellant: Shri S.D. Verma, AdvocateFor Respondent: Shri Abhijit Kundu, CIT D/R
Section 143(1)Section 143(3)Section 148Section 2(22)(e)Section 250Section 73