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2022 (5) TMI 378 - HC - Income TaxRevision u/s 264 - Loss on account of derivative transactions - it is petitioner’s case that when he realized his mistake treating F & O loss as speculative loss he filed the revision petition before respondent no.1 requesting him to assess his income as per law - HELD THAT:- We should keep in mind that assessee should pay only such amount of tax as legally payable under the provisions of Income Tax Act. Mistakes happen and we also see that assessee has taken different stand earlier. But the fact that is required to be seen is whether transaction in respect of trading in any derivatives carried out in the recognized Stock Exchange can be treated as speculative transaction and loss or gain in such transaction is normal business loss or gain. Courts have held that even if, return as submitted by the assessee is accepted by the Assessing Officer, and if thereafter, the assessee comes to know about the mistakes committed, that he was not liable for more taxation or had paid more tax, he can definitely approach revenue authority and in such event, it is open to the revisional authority to exercise its jurisdiction u/s 264 of the Act. Once assessee is able to satisfy about mistake due to which there was over assessment, the Commissioner had power to correct the same u/s 264(1) of the Act. In such situation, we would expect the Commissioner to apply his mind to the question and decide the matter. Simply saying, additions which are voluntarily agreed, can not be the subject matter of revision, would be little harsh on assessee. Therefore, we hereby set aside order impugned in this petition and remand the matter to the Commissioner of Income Tax for denovo consideration of petitioner’s application u/s 264 of the Act. We would expect the Commissioner to consider all the documents being submitted by petitioner and the submissions of petitioner and decide for himself whether loss as claimed would be speculative loss or non speculative loss, not withstanding the stand taken by petitioner in the original return of income or in the revised return filed. It will have to be an independent view of the Commissioner. Revision should be disposed by the Commissioner of Income Tax by 15.07.2022.
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