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2018 (10) TMI 720

Disallowance of speculation loss - loss arising from exchange traded currency derivatives - Held that:- CIT(A) rightly held that the assessee executed currency transactions in derivative segment on the platform of recognized stock exchange which is in the realm of ‘eligible transaction’ and covered by the exceptions provided to Section 43(5)(d) of the Act. In view of the provisions of Section 43(5 .....

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edabad ( CIT(A) in short), dated 23.05.2016 arising in the assessment order dated 30.01.2015 passed by the Assessing Officer (AO) under s. 143(3) of the Income Tax Act, 1961 (the Act) concerning assessment year 2012- 13. 2. The grounds of appeal raised by the Revenue reads as under:- That the ld. CIT(A) erred in law and on facts in deleting the addition of ₹ 74,18,448/- made on account of di .....

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e. 4. In the first appeal, the CIT(A) revisited the factual aspects as well as the legal position in this regard and found that the case of the assessee is squarely covered by the exceptions provided as per Clause (d) to Section 43(5) of the Act. The relevant operative part of the order of the CIT(A) reads as under: 5.5 I have gone through the facts of the case, findings of A.O. in assessment orde .....

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deration are in the nature of business transactions and not in the nature of speculative transactions. The A.R. of the appellant also relied upon following judgments of Jurisdictional Tribunal, other Tribunals and Courts, where it is held that the derivatives include foreign currency and call option/put option are transactions of derivative markets cannot be termed as speculative in nature, as hel .....

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d CIT(A). We find lack of merit in the appeal of the Revenue at the first instance. The CIT(A) rightly held that the assessee executed currency transactions in derivative segment on the platform of recognized stock exchange which is in the realm of eligible transaction and covered by the exceptions provided to Section 43(5)(d) of the Act. In view of the provisions of Section 43(5)(d) of the Act re .....

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