COMMISSIONER OF INCOME-TAX, GUJARAT vs KANTILAL NATHUCHAND SAMI

The Supreme Court held that under Section 24(1) of the Indian Income-tax Act, 1922, losses from speculative transactions cannot be set off against income from other sources, except against profits from other speculative transactions. The Court found that the Income-tax Officer correctly did not set off the speculative losses against income from property or other businesses in the assessment years 1958-59 and 1959-60. However, the Court ruled that the Officer erred in apportioning the speculative losses between partners instead of carrying them forward to offset profits in the subsequent year, 1960-61.