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2017 (11) TMI 1354 - HC - Income TaxDisallowance of speculative loss occurred on derivative transactions - ITAT confirming the deletion of addition holding the same as business loss - Held that:- As decided in CIT vs. New Ambadi Estates (P) Ltd [2012 (3) TMI 79 - MADRAS HIGH COURT] it was only NCSD, which is part of the PCD allotted in favour of the existing shareholder and then transferred to the bank, because the amount paid by the bank was treated as a loan to the existing shareholders and the said loan is treated as satisfied by issue of the NCSD to the bank.Therefore, the Tribunal has correctly held that there is an actual delivery and constructive delivery and they will not come within the purview of the "speculative transaction". Further, NCSD cannot be purchased or sold before allotment. Hence, pending allotment, non-convertible portion does not exist as such as commodities – Decided against the revenue.
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