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2019 (6) TMI 1392 - AT - Income TaxLoss from Future & Option and equity share trading loss - Business loss OR speculation loss - HELD THAT:- Identical issue arose before the Hon'ble Calcutta High Court in the case of Asian Financial Services [2016 (3) TMI 685 - CALCUTTA HIGH COURT] relied upon. Once it is deemed to be a normal business loss on the basis of proviso appended to Section 43(5) of the Act, a question of applying Section 73 of the Act or the Explanation thereto 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 (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. 14A by the assessing officer is justified. Accordingly, we do not find any error in the decision of the CIT(A) on this issue. Therefore, this ground of appeal of the assessee is dismissed.
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