Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2024 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (1) TMI 1069 - ITAT DELHIAllowability of Derivative loss - Business loss or speculative transaction - AO denied the set off of the derivative loss against the profits of the wine shop. - Estimation of income on the basis of alleged payment of margin monies - AO concluded that the assessee had not carried out the derivative transactions through a stock broker or sub-broker or intermediary registered u/s 12 of the SEBI Act and accordingly treated the said derivative transaction as a speculative transaction in terms of section 43(5) of the Act and disallowed the same. HELD THAT:- It is not in dispute that transactions were entered by the assessee with three sub brokers - The maximum amount of investment on one date of derivative transaction was Rs 1,27,20,985/- considering in aggregate of all the three parties. It is not in dispute that the assessee had incurred total loss in derivative transactions amounting to Rs 14,43,040/- which was separately disallowed by the ld. AO in the assessment. This point was not agitated by the assessee before the ld. CIT(A). Plea of the assessee is that she had not deposited any margin money with the sub-brokers - We find that the ld. AR placed on record the ledger account copies of the three sub-brokers along with contract notes of their respective brokers. - The total loss incurred by the assessee out of doing transactions with aforesaid three parties which has been paid by the assessee on the following dates from her bank account maintained with State Bank of India The sources for making the aforesaid payments are drawn from the books of accounts regularly maintained by the assessee and in any case, the same is not disputed by the revenue before us. Considering the various evidences submitted by the assessee as stated supra, we are inclined to accept to the contentions of the assessee and the loss of Rs 14,43,040/- alone had to be disallowed which had already been done by the ld. AO in the assessment and accepted by the assessee by not filing any appeal. Hence there is no need to make any separate addition on account of alleged payment of margin monies on an estimated basis and accordingly, the addition made in the sum is hereby deleted. Decided in favour of assessee.
|