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2023 (7) TMI 226 - AT - Income TaxSpeculative or non speculative business - treatment of “high sea sale” which is considered by revenue as speculative transaction as there is no end delivery - Adjustment of loss from activity of High Sea Sale with the interest income - HELD THAT:- The issue is only confined related to speculative transaction is delivery of the goods. When the delivery of the goods is executed, there is no treatment of the speculative transaction. The assessee placed a written submission and mentioned the details document that the said goods are duly taken delivery by the assessee during the purchase from sellers. There is no such any paper transaction or the transfer of the goods before taken the delivery. AR submitted the chart with documentary evidence which is depicting that the ‘edible oil’ purchased from Singapore / Malasysia. Thus when the goods are not taken by the delivery the entire issue is treated as speculative transaction. But in assessee’s case the entire transaction is going through by proper delivery of the goods during purchase and the documents are provided for evidence of delivery of goods related to high sea sale. We find that the observation of the ld. CIT(A) is not accepted and liable to be dismissed. Interest earned on FDRs - Interest which was treated as business income by the assessee and adjusted in the profit and loss account - We respectfully relied on the order of Shahi Export House [2010 (8) TMI 785 - DELHI HIGH COURT] Where the interest was taken as expenses, Not as an income from other sources. The investment in fixed deposit of the assessee were duly utilized for formation of letter of credit in relation to the foreign transaction. In the export and import, the investments are utilised in short term investment and there is no such any fix time of investment related to generation of the interest out of the said investment. We also relied on the order of the ITAT, Amritsar Bench [2023 (3) TMI 601 - ITAT AMRITSAR] - Accordingly, the order passed by the ld. CIT(A) is not required for any intervention related interest issue. Accordingly, ground taken for the issue of interest by the revenue is dismissed.
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