Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (3) TMI 331 - AT - Income TaxLoss from derivative transactions - Capital loss or business loss - Held that:- The decision in Platinum Asset Management Ltd. Versus Dy. Director of Income Tax (International Taxation) [2013 (12) TMI 478 - ITAT MUMBAI] followed - Income arising to a FII from the transfer of `securities” as specified in Explanation (b) to sec. 115AD can only be considered as short-term or long-term capital gain - It is impermissible to consider such income as falling under the head "Profits and gains of business or profession" - income arising from the transfer of securities shall be charged to tax under the head "capital gains" alone - Once inclusion of such income from the transfer of securities is held to be falling only under the head "Capital gains", it cannot be considered as `Business income”, whether speculative or non- speculative - Sec. 43(5) has no application to FIIs in respect of “securities” as defined in Explanation to sec. 115AD, income from whose transfer is considered as short term or long term capital gains - It is a well settled legal position that specific provisions override the general provisions - Thus, the income arising from the transaction in derivatives by the assessee, being FII, cannot be treated as business profit or loss but the same has to be capital gain or loss - Decided in favour of assessee.
|