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2012 (12) TMI 597 - AT - Income TaxAddition u/s 41(1) of sundry creditors - No purchases and sales were made during the year under consideration - Said amount was taken by the assessee as an advance for sale in earlier years – Held that:- The assessee has filed a copy of account of the said party, according to which, the payments have already been made to the said party. The payments have been shown to be debited to the bank account of the assessee and copies of bank accounts are also filed. Issue decides in favour of assessee Applicability of notification - Derivative transaction treated as speculative transaction – AO notice that transactions entered into by the assessee before 29th December 2005 covered under u/s 43(5)(d) – CBDT notified on 25th January 2006 regarding exclusion of derivative transaction from Sec 43(5) - Held that:- Following the decision in case of Claris Lifesciences (2008 (8) TMI 579 - GUJARAT HIGH COURT) once the approval is granted in the relevant previous year, and in the absence of anything indicated to the contrary, the approval has to be taken as effective from the beginning of the relevant year. Hence the derivate transactions, entered into by the assessee at the recognized stock exchanges even prior to the date of notification in the relevant previous year, are to be treated as covered by the exclusion clause set out in Sec. 43(5)(d). Issue decides in favour of assessee
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