9911796707
TMI Blog2014 (1) TMI 195X X X X Extracts X X X X X X X X Extracts X X X X ..... transaction without appreciating the fact that the assessee had not taken actual delivery of the share and the share transactions have been settled otherwise than by actual delivery therefore the same are considered to be speculative transactions within the meaning of section 43(5) and the same cannot be set off against normal business income. 2. Facts in brief as emerged from the corresponding assessment order passed u/s.143(3) of the IT Act dated 26.11.2010 were that the assessee in individual capacity is stated to be in the business of trading of tobacco and trading in shares. The AO has noted that assessee has shown net loss of Rs.9,74,058/- from share trading in various segments, like Intraday, F&O derivatives, Nifty and delivery. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... livery and also in the segment of intraday, F&Q derivatives, nifty and delivery. In view of section 43(5)(d), an eligible transaction in respect of trading in derivatives referred to in clause (ac) of section 2 of the securities contracts (regulation) act, 1956 carried out in recognized stock exchange shall not be deemed to be a speculative transaction. In the case of appellant the transactions of shares have been carried out in recognized stock exchange. Further the AO has not been able to bring on record any material which could show that the transaction of shares are not eligible transaction in respect of trading in derivatives referred to in clause (ac) of section 2 of the securities contracts act. Considering these facts, I hold that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 27 ITD 386 (Chennai) and Dy. CIT v. SSKI Investors Services (P.) Ltd. [2008] 113 TTJ 511 (Mumbai). 6. Having heard the submissions of both the sides, we have noted that section 43(5) has an exception to speculative transaction as per the proviso annexed therein, relevant portion of sub-clause (d) is reproduced below:- Section 43(5)(d):- An eligible transaction in respect of trading in derivatives referred to in clause (ac) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) carried out in a recognised stock exchange. 6.1 Although as per section 43(5) a "speculative transaction" means a transaction in which a contract for the purchase or sale of any commodity, including stocks and shares, is periodically or ultim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ling or dealing in securities. "unquote. The said Act has also defined "Securities" which means, quote "(h) "securities" include - (i) shares, scripts stocks, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or other body corporate; [ia] derivative;" "unquote. The said Act had also defined "stock exchange" which means, quote "(f) "recognized stock exchange" means a stock exchange which is for the time being recognized by the Central Government under section 4;" unquote. 6.2 These provisions have been considered by the Respected Coordinate Benches, as cited by ld.AR, in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
