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2016 (8) TMI 75 - AT - Income TaxTreatment to business losses - speculation loss - transaction in F&O but the same was set off against the normal business - Held that:- Losses incurred prior to issue of notification on 25th January, 2006 but during the relevant previous year 2005-06 shall be treated as non-speculative normal business losses provided it satisfies other conditions as stipulated vide proviso (d) to clause (5) of Section 43 of the Act read with explanation. In our considered view, the losses incurred by the assessee i.e. ₹ 20,83,591/- which are stated to be incurred during previous year 2005-06 but prior to 25th January, 2006 i.e. the date when NSE/BSE were recognised by Central Government vide notification issued by Central Government on 25-01-2006, but within the previous year 2005-06 which was relevant to the assessment year 2006-07 should be treated as normal non-speculative business losses and are to be treated as covered by the exclusion clause set out in proviso (d) to clause (5) of Section 43 read with explanation and allowed to be carried forward as non- speculative business losses to set off against the normal business income of the instant previous year relevant to the assessment year in question, as laid down in the ratio of the decisions of the Tribunal cited before us as set out above and also as per our detailed discussions in preceding para’s of this order, hence we allow the appeal filed by the assessee on this ground
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