Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (4) TMI 868 - AT - Income TaxAdjustment between loss on security trading activity and profit on derivative trading by KSSBL - Held that:- As mentioned here-in-above, ‘Derivative’ is an instrument whose value depends on its underlying cash or physical asset. Hence it means that the value is derived from the value of the underlying asset like securities and commodities. In view of the above, the order of learned CIT(A) is set aside and the AO is directed to verify ‘having identical underlying shares’ (1.1/ grounds of appeal), ‘integral part of composite arbitrage / hedging mechanism’ (1.2 / grounds of appeal), ‘adjunct of simultaneous opposite transactions in derivative segment’ (1.4 / grounds of appeal). The assessee is directed to file the details on the above before the AO. If after verification, the contentions of the assessee in grounds of appeal 1.1; 1.2 & 1.4 are found to be correct then the AO is directed to accept the additional income of ₹ 1,88,56,982/- offered by the assessee as per revised computation of income filed along with the application dated 15.11.2011 before him. In case the assessee fails to prove the above , then the AO is directed to arrive at business income as done in his assessment order after complying with the direction in para 7.1 here-in-above.
|