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2014 (1) TMI 195 - AT - Income TaxNature of loss – Loss from Speculative transaction or not u/s 43(5) of the Act - Actual delivery of the shares not taken – Share transaction settled otherwise than actual delivery – Held that:- Relying upon Dy. CIT v. Paterson Securities (P.) Ltd. 2010 (2) TMI 683 - ITAT, CHENNAI] - After going through the definition of stock exchange, it would be proper to refer the issue back to the AO to find out the stock exchanges in which the transactions were carried out by the assessee - After ascertaining the names of the stock exchange, then the AO is expected to examine whether those stock exchanges have fallen within the definition of "stock exchange" as given in the Securities Contracts (Regulation) Act - The AO is then also required to verify that the "Security" as mentioned in the contract note by the share-broker falls within the definition of "derivative" or "securities" as defined under the Act - the AO is satisfied that the transaction of those shares/securities/derivatives is within the parameters – Decided in favour of Revenue.
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