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2014 (1) TMI 943 - AT - Income TaxDeletion made on account of set off made - Loss on Future and Option set off against the normal business Held that:- There was a credit balance in one account and debit balance in another account - Simply because the broker has not carried out any adjustment entry during the year under consideration and he said adjustment entry during the year under consideration and he said adjustment entry was passed on the next day of the close of the year i.e. 1.4.2008, solely on this basis the F&O transactions of the appellant, which were duly routed through the recognize stock exchange, cannot be held as speculative transaction - as per the amended provisions of section 43(5), the transactions cannot be treated as speculative transactions and loss of such transactions cannot be held as notional loss with effect from 1.4.2006 Relying upon The Commissioner of Income-tax, Central-IV Versus Shri Bharat R. Ruia (HUF) [2011 (4) TMI 37 - BOMBAY HIGH COURT]. The assessee has stated that there was net amount to be received by the assessee from the broker and therefore there was no need by the assessee to make the payment as on 31.3.2008 on account of loss in F&O segment - the assessee also filed details of loss incurred in derivatives before the AO the order of the CIT(A) upheld simply because the broker had not carried any adjustment entered during the year under consideration and the said adjustment entry was passed on the next day of close of the year i.e. 1.4.2008 could not be a ground to hold that it was a notional loss the CIT(A) has rightly held that the said F&O transactions were actually settled by the assessee and the loss incurred was actual - the AO is directed to treat the loss as business loss which is liable to be set off against the business income of the assessee Decided against Revenue.
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