2014 (12) TMI 1249

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..... the order of CIT(A) dated 10-1-2012 for the Assessment Year 2008-09, in the matter of order passed u/s.143(3) of the Act, wherein following grounds have been taken by the assessee :- "The only issue for consideration relates to not allowing claim of set off of loss of earlier years amounting Rs. 50,64,262/ - incurred on derivative transactions to adjust against profit earned on derivative transa .....

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..... rivative transactions in the form of Futures and Options and incurred speculative loss since A.Y.2004-2005. In the preceding assessment years 2004-05, 2005-06, 2006-07, 2007-08 the assessee has incurred losses from derivative transactions as per chart hereunder: Assessment Year Loss Amount 2004-2005 Rs.15,38,522/- 2005-2006 Rs.6,60,837/- 2006-2007 Rs.16,60,751/- 2007-2008 Rs.12,04,152/- .....

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..... speculation loss from earlier years. 4. From the record we found that during the year under consideration the assessee had entered into similar transactions in derivatives being future and options. However, the AO has declined assessee's claim of set off of earlier years' loss against the profit from similar transaction during the year under consideration. It is clear from the record that assesse .....

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..... d forward losses of earlier assessment years against profits of the same business in this assessment year. 5. The classification of business for the limited purpose of set off of past losses, into speculative and non-speculative is to be done on uniform basis and losses incurred in the same business in earlier assessment years are to be treated as eligible for set off against profit of the same b .....

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..... L 324 (Mum- Trib) vide order dated 31-5-2011, has held that the loss incurred in derivative transactions upto A.Y.2005-2006 can be set off against the income from derivative transactions for the A.Y.2006-2007. 7. In view of the above, we do not find any merit in the action of the lower authorities in declining claim of set off of losses of earlier year against profit of current year. 8. In the r .....

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