Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2016 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (10) TMI 500 - HC - Income TaxActivity of jobbing entered into - whether is not a speculative transaction within the meaning of Section 43(5)(c) of the Act? - Held that:- In view of the clear provision as found in Section 43(5) proviso (c) of the Act, the jobbing activity done to guard against business loss could not be considered as a speculative transaction. Thus loss on account of ₹ 60.37 lakhs claimed by the Respondent Assessee was allowed to be set off against business profits. We find that there is no dispute between the parties that the transactions entered into by the Respondent Assessee are in fact jobbing transactions. The provisions of Section 43(5) proviso (c) of the Act are very clear in excluding jobbing activity done to guard against loss from the ambit of speculative loss. It is a self-evident position on reading of Section 43(5) proviso (c) of the Act. Therefore jobbing transactions in the present facts would not be covered by the definition of speculative transaction in view of Section 43(5) proviso (c) of the Act. No substantial question of law
|