1 ,2 * * * * *
3 (3) 4 *** In the case of an assessee, being the owner of horses maintained by
him for running in horse races (such horses being hereafter in this sub-section
referred to as race horses), 5 the amount of loss incurred by the assessee in
the activity of owning and maintaining race horses in any assessment year shall
not be set off against income, if any, from any source other than the activity
of owning and maintaining race horses in that year and shall, subject to the
other provisions of this Chapter, be carried forward to the following assessment
year and-
(a) it shall be set off against the income, if any, 6 from the activity of owning and maintaining race horses, assessable for that assessment year:
Provided that the activity of owning and maintaining race horses is carried on by him in the previous year relevant for that assessment year; and
(b) if the loss cannot be wholly so set off, the amount of loss not so set off shall be carried forward to the following assessment year and so on; so, however, that no portion of the loss shall be carried forward for more than four assessment years immediately succeeding the assessment year for which the loss was first computed.
Explanation.-For the purposes of this sub-section-
(a) "amount of loss incurred by the assessee in the activity of owning and
maintaining race horses" means-
(i) in a case where the assessee has no income by way of stake money, the amount of expenditure (not being in the nature of capital expenditure) laid out or expended by him wholly and exclusively for the purposes of maintaining race horses;
(ii) in a case where the assessee has income by way of stake money, the amount by which such income falls short of the amount of expenditure (not being in the nature of capital expenditure) laid out or expended by the assessee wholly and exclusively for the purposes of maintaining race horses;
(b) "horse race" means a horse race upon which wagering or betting may be lawfully made;
(c) "income by way of stake money" means the gross amount of prize money received on a race horse or race horses by the owner thereof on account of the horse or horses or any one or more of the horses winning or being placed second or in any lower position in horse races.
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1. Ins. by Act 16 of 1972, s. 11 (w.e.f. 1-4-1972).
2. Sub-sections (1) and (2) omitted by Act 23 of 1986, s. 16 (w.e.f. 1-4-1987).
3. Ins. by Act 20 of 1974, s. 6 (w.e.f. 1-4-1975).
4. The words "Where for any assessment year" omitted by Act 23 of 1986, s. 16 (w.e.f.
1-4-1987).
5. Subs. by s. 16, ibid., for certain words (w.e.f. 1-4-1987).
6. Subs. by s. 16, ibid., for "from the source specified in clause (c) of
sub-section (2)" (w.e.f. 1-4-1987).
Section 74A Losses from certain specified sources falling under the head Income from other sources
Section 79 Carry forward and set off of losses in case of certain companies
Section 80 Submission of return for losses
Section 80A Deductions to be made in computing total income
Section 80AB Deductions to be made with reference to the income included in the gross total income
Section 80AC Deduction not to be allowed unless return furnished