Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (6) TMI 83 - AT - Income TaxTreatment to loss from derivative transactions in Commodity Futures and Options as speculative loss - set off of loss arising from derivative transactions in commodity future and options against business income - transactions were done through recognized stock exchange hence section 73(1) was not applicable - CBDT, on 22nd May 2009, recognizing MCX as recognized Stock Exchange for the purpose of section 43(5) - HELD THAT:- Similar issue has been decided in favour of the assessee by the Mumbai Bench of this Tribunal in the case of ACIT –vs.- Arnov Akshay Mehta [2012 (9) TMI 447 - ITAT MUMBAI] wherein held the transactions carried out through MCX Stock Exchange after 1st April 2006, would be eligible for being treated as non-speculation within the meaning of clause (d) of proviso to section 43(5). Recognition by the Central Govt. of the Stock Exchange from a later date will not debar the transaction as non-speculation, especially after 1st April 2006. Therefore, in our opinion, the assessee's derivative trading through MCX Stock Exchange in the assessment year 2007-08 is non-speculation transaction and, therefore, the loss incurred in such transactions is to be treated as normal business loss. Thus direct the AO to allow the claim of the assessee for set off of loss in question incurred by the assessee in Commodity Futures and Options against profit from non-speculation business as claimed. - Decided in favour of assessee.
|