74A. Losses from certain
specified sources falling under the head “Income from
other sources”.- (1)
(2)
(3) 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),
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, from
the activity of own-ing 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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