Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (12) TMI 565 - AT - Income TaxWhether loss from derivative transactions is eligible to set off against profit arising out of delivery based transactions – Whether delivery based purchase and sale of shares is deemed to be speculative business - Assessee is engage in both delivery and non-delivery based and derivatives transaction of shares & securities – AO treated the equity derivatives F&O losses upto 25.01.2006 as speculative loss - Provision of Sec. 43(5)(d) will be applicable vide Board Circular from date 25.01.2006, loss/profit arising on derivative transactions in equity futures and options at BSE/NSE was to be treated as business loss/profit – Held that:- Where an assessee is a company whose business consists in any part of the purchase and sale of shares of other Companies, it shall be deemed to be carrying on a speculation business to the extent to which the business consists of purchase and sale of such shares. Whether or not it is a profit or loss that has resulted from carrying on such business, is a consideration which is alien to the meaning of what constitutes a speculation business by the explanation to Section 73, any loss computed in respect of that speculation business, can be set off only against the profits and gains of an other speculation business. Therefore, loss from derivatives transactions is to be allowed to be set off against the profit arising out of delivery based transactions as both are speculative/deemed speculative transactions. Appeal decides in favour of assessee
|