TMI Blog2016 (10) TMI 842X X X X Extracts X X X X X X X X Extracts X X X X ..... ered as speculative loss. However, we are unable to appreciate the order of the CIT(A) in directing the AO to treat the profit from business of income again as total income when AO himself has treated an amount of ₹ 18,16,952/- as speculative loss. Even the AO in our opinion has wrongly considered the amount. The gain on trading in stock futures is also from the speculative transactions. Therefore, the net loss of ₹ 13,57,130/- only can be considered as loss from the speculative transactions. Therefore, we modify the orders of the AO and CIT(A) to the extent of computation of loss. AO is directed to treat only an amount of ₹ 13,57,130/- as speculative loss and the balance loss claimed by assessee should be treated as bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al. 3. Written arguments filed before CIT (Appeals) may be read with. The rejection of appeal by CIT is without a speaking order. Moreso, contents of Written arguments is not discussed by C.I.T. appeals . 2. Briefly stated assessee, engaged in the business of manufacture and sale of gold ornaments, filed return of loss admitting ₹ 17,18,882/-. In the course of assessment proceedings, the Assessing Officer (AO) noticed that assessee has claimed loss of ₹ 13,57,130/- from commodity and share trading, the loss of which is worked out as under: Rs. i. Loss from trading in commodities 18,16,952 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om debt instrument, share, loan, risk instrument or contractual differences or any other form of security. (b) a contract which derives its value from the prices or index of prices of underlying securities. Since the commodities like gold and silver are not securities within the meaning of sec.2(ac), therefore, the saving clause provided under clause (d) of Sec. 43(5) shall not apply to the assessee . 3.1. He accordingly considered an amount of ₹ 18,16,952/- as speculative loss. Before the Ld.CIT(A), it was contended that assessee s transactions are to be considered as separate business and therefore, the same should not be considered as speculative loss. It was the contention that assessee is in trading and so the loss can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant of ₹ 13,57,130/-. Hence, the profit from business income is of ₹ 3,61,752/- to be taken as total income in place of ₹ 98,070/- as arrived by the Assessing Officer . 4. Ld. Counsel placed on record a Paper Book containing set of transactions undertaken by assessee in stock exchange through brokers in commodities market as well as share market. It was his submission that assessee s business itself is undertaking purchase and sale of shares and commodities, therefore, the same has to be considered as business loss only not as a speculative loss. 5. Ld. DR however, relied on the orders of the authorities. 6. We have considered the rival contentions and examined the ledger account copies placed on re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) carried out in a recognised stock exchange; or (e) an eligible transaction in respect of trading in commodity derivatives carried out in a recognised association 6a[, which is chargeable to commodities transaction tax under Chapter VII of the Finance Act, 2013 (17 of 2013),] shall not be deemed to be a speculative transaction. Explanation 1.-For the purposes of clause (d), the expressions- (i) eligible transaction means any transaction,- (A) carried out electronically on screen-based systems through a stock broker or sub-broker or such other intermediary registered under section 12 of the Securities and Exchange Board of India Act, 1992 (15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion) Act, 1952 (74 of 1952) and the rules, regulations or byelaws made or directions issued under that Act on a recognised association; and (B) which is supported by a time stamped contract note issued by such member or intermediary to every client indicating in the contract note, the unique client identity number allotted under the Act, rules, regulations or bye-laws referred to in sub-clause (A), unique trade number and permanent account number allotted under this Act; (iii) recognised association means a recognised association as referred to in clause (j) of section 2 of the Forward Contracts (Regulation) Act, 1952 (74 of 1952) and which fulfils such conditions as may be prescribed7a and is notified by the Central Governme ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
