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2012 (8) TMI 69 - AT - Income TaxTransactions in derivatives - Short term capital loss in respect of speculation business - Held that:- As that speculation loss from derivatives can be set off against the income earned from derivatives after amendment in the Act with effect from 1.4.2006 thus assessee is entitled to the relief and the loss suffered by the assessee during derivative trading should be allowed as short term capital loss and the same can be set off against the short term capital gain during the year - in favour of assessee. Disallowance of commission paid to foreign agents - Held that:- As decided in Bharat Earth Movers Versus Commissioner of Income-Tax [2000 (8) TMI 4 - SUPREME COURT ] if a business liability has definitely arisen in the accounting year, the deduction should be allowed although the liability may have to be quantified and discharged at a future date what should be certain is the incurring of the liability - As the liability to pay commission has arisen by virtue of sales in the financial year 2004-05 relevant to the assessment year 2005-06. The realization of sale amount in the next financial year will not make much difference as the liability to pay commission had crystallized in the financial year 2004-05 itself after sale - in favour of assessee.
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