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2018 (6) TMI 1035 - AT - Income TaxTreatment of future & options trading’s derivative losses of assessee Company as speculation loss under section 73 - nature of loss - conflicting views - diversified decisions - Held that:-Even when the decision of Hon’ble non-jurisdictional High Courts are in conflict with each other, the only objective criteria which followed by us is to take a view favorable to the assessee. Hon’ble Calcutta High Court’s decision in the case of Asian Financial Services Ltd to be followed [2016 (3) TMI 685 - CALCUTTA HIGH COURT] wherein decided that the loss incurred on account of derivatives would be deemed business loss under proviso to section 43(5) and not speculation loss and, accordingly Explanation to section 73 could not be applied - the “loss (on account of sale of derivatives) would be allowed to be set off against income arising out of proper business because derivatives were treated differently within meaning of Explanation to section 73(4) and not at par with the shares” - Decided in favour of assessee
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