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2021 (9) TMI 890 - AT - Income TaxIncome earned from trading in Shares, Future and Options and derivatives - apportioning of expenditure towards alleged speculation/business - AO firstly re-calculated the loss by apportioning the expenditure incurred during the year, computing loss and further, treated the alleged loss from trading of Shares, Future and Options and derivatives as speculative in nature, not liable to be set off from the other business income - HELD THAT:- As regards the apportionment of expenditure incurred during the year, the Ld. AO erred to taking note of the fact that the income from commission brokerage is computed on the basis of turnover carried out on recognised exchange of which the assessee is a member - Assessee has shown better income from sale and purchase of shares and lower loss in derivative business and, therefore, in our considered view, the Ld. CIT(A) has rightly appreciated this aspect, thereby deleting the addition made by the Ld. AO wrongly apportioning of expenditure towards alleged speculation/business, which gave rise to higher speculation loss. Thus, ground no. 1 raised by the revenue stands dismissed. Characterization of loss - Treating the loss/income incurred by the assessee for trading in shares, Future and Options and derivatives as business loss as against the finding of the Ld. AO treating the same as speculation loss - HELD THAT:- We find this issue has come up before this tribunal in assessee’s own case for the A.Y 2012-13 [2021 (2) TMI 1204 - ITAT KOLKATA] wherein the Tribunal after placing reliance on the judgment of the Hon’ble Jurisdictional High Court in assessee’s own case for the A.Y 2005-06 by order dated 12-03-2014, has held that the income from derivatives, Future and Options and Share trading carried out on recognised Stock Exchange is not in the nature of speculation and it is a business income. Addition u/s 2(24)(x) r.w.s. 36(1)(va) in respect of employees’ contribution towards PF/ESI - delay on payment of employees’ contribution to PF as prescribed by the respective Act - HELD THAT:- As alleged sum was duly deposited with the respective authority before the due date of filing of return of income for the A.Y 2011-12 prescribed u/s. 139(1) of the Act. We find that the case of the assessee is covered by the judgment of the Hon’ble Jurisdictional High Court of Calcutta in the case of Vijayshree Ltd [2011 (4) TMI 63 - ITAT KOLKATA] as decided in favour of assessee.
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