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2016 (7) TMI 561 - ITAT AHMEDABADDisallowance of speculation loss u/s.43(5) - hedging transactions or speculative transactions - Held that:- We find that the ld.CIT(A) while deciding the issue has noted that the assessee had done transactions through HDFC Bank and Karvy Stock Broking Ltd., the transactions done through HDFC Bank were very few, whereas the transactions done through Karvy Stock Broking Ltd. were frequent and the number of transactions done with Karvy Stock Broking Ltd. indicated that they were not in the nature of hedging transactions but were in the nature of speculative transactions. Therefore concluded that the transactions done through HDFC Bank were linked with the business of the assessee and therefore could be considered as hedging transactions, whereas the transactions through Karvy Stock Broking Ltd. were in the nature of speculative transactions. He accordingly directed the loss incurred on the transactions through HDFC Bank be allowed and the loss incurred on the transactions with Karvy Stock Broking Ltd. be considered in speculative in nature. Before us, Assessee and Revenue have not placed any material on record to controvert the findings of ld.CIT(A) Addition made u/s.36(1)(vii) - Held that:- We find that the ld.CIT(A) while deciding the issue in favour of assessee has noted that the transactions with the Directors were of current account type and there was opening credit balance in the account for which the Directors did not charge any interest from the assessee and assessee has also not charged the interest. He has further given finding that the interest-free funds in the form of Share Capital were far in excess of the amount advanced to the Director and in view the decision of Hon’ble Bombay High Court in the case of Reliance Utilities and Power Ltd. (2009 (1) TMI 4 - BOMBAY HIGH COURT), no disallowance u/s.36(1)(iii) of the Act was called for. Before us, Revenue has not placed any material on record to controvert the findings of ld.CIT(A) - Decided in favour of assessee
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