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2015 (8) TMI 70 - AT - Income TaxDisallowance of loss incurred on trading in commodity derivatives - Held that:- If the amendment is made in procedural mechanism, it will apply to all the proceedings pending or to be initiated. Once in the statute, it has been provided that w.e.f. 1.4.2006, an eligible transaction carried out in a recognized Stock Exchange will not be treated as speculative transaction, then simply because procedural mechanism has taken a long time to recognize the Stock Exchange, it will not lead to an inference that the same would be applicable from the date when the Stock Exchange has been recognized by the Central Govt. The notification issued under Rule 6DDB, does not empower any right or create obligation but only recognizes what is already provided in statute. Thus, the transactions carried out through MCX Stock Exchange after 1.4.2006, would be eligible for being treated as non-speculative derivates within the meaning of clause (d) of proviso to section 43(5). In view of the above, the Assessing Officer is directed to delete the disallowance of loss incurred by assessee company on trade in commodity derivatives. - Decided in favour of assessee.
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