TMI Blog2012 (3) TMI 570X X X X Extracts X X X X X X X X Extracts X X X X ..... te this finding. As the nature of business has to be understood in the proper perspective considering the business strategy of the assessee and as the composite transactions of both NSE and BSE have to be taken into account, we set aside the matter to the file of Assessing Officer for adjudication afresh in accordance with law. This ground is, thus, allowed for statistical purposes. - ITA no. 4227/Mum./2010, ITA no. 5027/Mum./2010 - - - Dated:- 14-3-2012 - SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER, AND SHRI R.S. PADVEKAR, JUDICIAL MEMBER Assessee by : Mr. Rakesh Joshi Revenue by : Mr. D.S. Sunder Singh O R D E R PER J. SUDHAKAR REDDY, A.M. These cross appeals are directed against the impugned order dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n loss and is added to assessee s total income. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in directing the A.O. to delete the additions made on account of F O for ₹ 4,37,903/- without appreciating the fact that the judgments relied upon by ld. CIT(A) are not applicable in this case. 5. Both the parties conceded before us that similar issue was considered by Mumbai J Bench of the Tribunal in M/s. Prem Associates Advertising Marketing v/s JCIT, ITA no.6547/Mum./2009, order dated 17th September 2010, wherein the Tribunal, vide Para-7, held as follows:- 7. We find that it is undisputed position that the stock exchanges, on which the impugned transactions were carried out, were dul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive loss under section 43(5) of the Act and not allowing set off against other share related profits without appreciating the facts and circumstances of the case. 8. After hearing rival contentions, we find that the Revenue authorities have not properly understood the nature of business of the assessee. The assessee submitted the following note to explain its nature of business:- The appellant is engaged in the business of jobbing / arbitrage activities. This jobbing or arbitrage is not defined in the Act but referred in clause (c) of section 43(5) of the Act. In this activity a trader takes the advantage of variation of price quote of same scrip at two different exchanges i.e. the purchase of securities on one market for immediate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shown them under sale purchase. The transactions carried out by the appellant can be illustrated as follows: Scrip NSE BSE Result Scrip 1 +100 @ 102 -100 @ 105 Profit of ` 3 Scrip 1 -100 @ 101 Exchangewise Result Loss of Re.1 Profit of ` 4 (assuming stock cost of ` 10) In the above instance, the appellant in first transaction earned a profit of ₹ 3/-, which he has accounted under sale purchase account (delivery transaction) but the Ld ..... X X X X Extracts X X X X X X X X Extracts X X X X
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