TMI Blog2018 (1) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... proper instructions of taking position in future and option segment and therefore he cannot disown the loss. M/s. Religare Securities Ltd had not disputed the quantum of loss as of ₹ 15,76,022/-. The arbitrator ultimately found no substance in the claim of the assessee and dismissed the claim of the assessee against M/s. Religare Securities Ltd. This evidence is sufficient to prove the claim of the assessee that he had incurred a loss of ₹ 15,76,022/-. The loss is directed to be allowed as deduction. Ground no.1 is allowed. Addition on account of interest on IL & FS for margin funding in Future and Option Trading of Share - Held that:- The assessee claims that interest need not be capitalized as cost of investment . Therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g total income the assessee had claimed deduction a sum of ₹ 15,80,125/- being the loss on account of share trading. The assessee had appointed M/s. Religare Securities Ltd, who is carrying on share and share brokerage activity as a corporate member of Bombay Stock Exchange Ltd. He had opened an account and had off-line trading and DP account with M/s Religare Securities Ltd. He also dealt in Future and Option segments on NSE Ltd, through his stock broker. It was the plea of the assessee that M/s Religare Securities Ltd had carried out certain transactions on behalf of the assessee without proper instructions from the assessee which resulted in a loss of ₹ 15,80,213.70 and the said loss had to be allowed as deduction in computin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as deduction in computing total income of the assessee. 5. On appeal by the assessee the CIT(A) confirmed the order of the AO. Aggrieved by the order of CIT(A) the assessee is in appeal before the Tribunal. 6. The ld. counsel for the assessee reiterated the submissions made before the CIT(A). He also filed a copy of the arbitrator award dated 10.06.2008 in which the claim of the assessee was rejected by the arbitrators. He pointed out that in the said award at page 5 para-vii, the arbitrator has referred to the fact that the loss of ₹ 15,76,022/- could not have been averted by M/s Religare Securities Ltd because the assessee had not given proper instructions to the broker for taking position in future and option segment. This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as deduction. Ground no.1 is allowed. 8. Ground No.2 raised by the assessee reads as follows :- 2. For that on the facts and in the circumstances of the case, the Ld. CIT(A) was not justified in confirming the disallowance of ₹ 85,743/- made by the A.O. on account of interest on IL FS for margin funding in Future and Option Trading of Share 9. As far as ground no.2 raised by the assessee is concerned the facts are as follows :- The assessee in income and expenditure account showed interest of ₹ 85,743/- paid to IL and FS during the relevant previous year. This borrowing from IL and FS for acquiring investments and the interest of ₹ 85,743/- had been capitalized by debiting the investment account. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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