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2015 (1) TMI 1281 - AT - Income TaxDisallowance of loss in trading of shares invoking Explanation to section 73 - assessee raised a new issue that if AO treats the loss arising from shares as speculation loss the profits from derivatives is to be set off, since both the transactions are speculative in nature - Held that:- In view of the alternative plea of the assessee, we are in agreement with the argument of Ld. counsel for the assessee that the income from derivatives is defined in section 43(5) of the Act and since it excludes such transactions from the nature of speculative transaction and AO treats that the transaction has not been excluded from section 73 of the Act, therefore, the assessee was entitled to claim the loss of shares against the income of derivatives. Respectfully following the decision of Hon'ble Delhi High Court in the case of DLF Commercial Developers Ltd. [2013 (7) TMI 334 - DELHI HIGH COURT], we allow the alternative claim of the assessee and direct the AO to allow this loss against derivative incomes. - Decided against revenue Disallowance u/s 14A - Held that:- We find that relevant assessment year involved is 2007-08 and rule 8D will not apply being prospective as held by Hon’ble Bombay High Court in the case of Godrej & Boyce Mfg. Co. Ltd. vs. DCIT [2010 (8) TMI 77 - BOMBAY HIGH COURT ]. We find that the Tribunal is consistently estimating the net profit @1% of the exempted income and we find no infirmity in the order of the CIT(A). - Decided against revenue
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