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2019 (3) TMI 1717 - AT - Income TaxDisallowance of loss on rate settlement (contracts) - perusal of the order of the CIT(A) shows that while deciding the appeal the FAA has considered certain documents - HELD THAT:- When these documents were filed for the first time before the CIT(A) the least he could have done was to call for a remand report from the Assessing Officer. In our understanding of the facts the CIT(A) has violated the basic principles of natural justice. Therefore, this issue is restored to the files of the Assessing Officer. The assessee is directed to furnish all the necessary evidences before the Assessing Officer and the Assessing Officer is directed to verify the same and decide this issue afresh after giving a reasonable opportunity of being heard to the assessee. Ground No.1 is allowed for statistical purpose. Disallowance of speculative loss on derivative trading on MCX - Whether it was not an approved stock exchange within the meaning of proviso (d) of section 43(5) ? - HELD THAT:- There is some confusion over the exchange where the loss has arisen. The Assessing Officer has proceeded by considering that the transaction was done, through multi commodity stock exchange of India Limited whereas the FAA has proceeded on the premise that the transaction has been done through multi commodity stock exchange. Since the recognition has been given to MCX and not Multi commodity stock exchange of India limited, therefore, in our opinion this has to be verified again. We, therefore, restore this issue to the files of the Assessing Officer. The assessee is directed to demonstrate that his transactions were done, through the exchange which was subsequently notified as a recognized exchange. The Assessing Officer is directed to examine the evidences and decide the issue afresh. The ground No.2 is also allowed for statistical purpose.
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