set off and carry forward

Even i haven't got any clue whether there is any provision of this sort, in the case of winnings from lottery etc. even the expenses incurred in relation to that income are not allowed as deduction forget about loss.

no loss can be set off from lottery income u think right

As per Sec 73, any loss, in respect of a speculation business carried on by the assessee, shall be set off only against income of another speculation business. It cannot be set off fromnon-speculation business income. However, a business loss can be set off against income from speculation business but vice versa is not possible. Loss from HP can be set off against income from any other HP. According to me the author is right. Loss of Rs.7000 can be set off against amount won from lottery.

I personally thinks different authors interpreted differently

section 115 of lottery income states that"NO LOSSES CAN BE SET OFF FROM WINNING OF LOTTERY INCOME"
FURTHER IN CHAPTER CARRY FORWARD AND SET OFF IT STATES THAT;
1. INCOME FROM HOUSE PROPERTY (INTER HEAD) CAN BE SET OFF AGAINST ANY INCOME

2. LOSS FROM NON SPECULATIVE BUSSINESS CAN BE SET OFF AGAINST ANY INCOME OTHER THAN SALARY
I THINKS AUTHORS HAVE INTERPRETED IT DIFFERENTLY AS IN SECTION 115 ITS CARRIED THE WORD "NO LOSS" WHICH IS INTERPRETED