TMI Blog2019 (6) TMI 1392X X X X Extracts X X X X X X X X Extracts X X X X ..... lhi High Court in DLF Commercial ( 2013 (7) TMI 334 - DELHI HIGH COURT ) took a distinct stand that derivatives cannot be treated at par with shares for the purposes of Explanation to Section 73 because the legislature has treated it differently. Thus, in view of the aforesaid position enunciated by the Hon'ble High Court in Asian Financial Services (supra), we find good deal of force in the case of assessee. Disallowance of expenses u/s.14A r.w. Rule 8D - HELD THAT:- Assessee has earned dividend income claimed as exempt u/s. 10(34) of the act. Since the assessee has not substantiated with any relevant material that not any expenditure has been incurred towards earning of the aforesaid dividend income, therefore, disallowance u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t transactions in shares, F O and earned brokerage income and interest income. On verification of the detail submitted, the assessing officer observed that assessee has shown loss of ₹ 15,69,53,695/- from F O business and loss of ₹ 2,46,403 from share trading. Therefore, the assessing officer has asked the assessee to explain as to why the aforesaid losses should not be disallowed as speculation loss as per explanation to section 73 of the act. The assessee has explained that transactions in respect of trading in derivatives carried out electronically on screen based submission through a stock exchange broker on a registered stock exchange and supported by a time stamped contract note issued by the stock broker indicatin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to our notice that identical issue on similar fact in the case of the assessee itself pertaining to assessment year 2012-13 has been adjudicated by the Co-ordinate Bench of the ITAT vide ITA No. 770/Ahd/2016 and the issue was decided in favour of the assessee. With the assistance of ld. representatives, we have gone through the above cited order of the Co-ordinate Bench of the ITAT and noticed that similar issue on identical facts has been decided in favour of the assessee. The relevant parts of the decision of the ITAT vide ITA No. 770Ahd/2016 in the case of the assessee itself is reproduced as under:- 9. We have carefully considered the rival submissions and perused the respective orders of the AO and CIT(A). The substantive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reto for the purposes of refusing loss to be set off against business income is wholly incorrect. The Hon'ble Calcutta High Court after taking note of the decision of Hon'ble Delhi High Court in DLF Commercial (supra) took a distinct stand that derivatives cannot be treated at par with shares for the purposes of Explanation to Section 73 of the Act because the legislature has treated it differently. Thus, in view of the aforesaid position enunciated by the Hon'ble High Court in Asian Financial Services (supra), we find good deal of force in the case of assessee. The claim of the assessee thus requires to be allowed on this ground alone. Respectfully following the decision of the Co-ordinate Bench in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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