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2019 (1) TMI 1595

..... tween the submission filed by the assessee and the observation of the AO. But in the given facts and circumstances, we are of the view that the AO erred in understanding the details filed by the assessee. It is because on the same set of documents, the CIT(A) called for the remand report from the AO, but he failed to do so despite several reminders issue to him. Thus considering the facts in totality, we are of the view that the impugned loss does not represent the speculative transaction in pursuance to the provisions of clause (d) of subsection 5 of section 43 of the Act. Accordingly, we do not find any infirmity in the order of the Ld. CIT(A). Hence the ground of appeal of the Revenue is dismissed. - ITA No. 1393/Ahd/2017 - 1-1-2019 - SH .....

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..... he assessee failed to furnish the supporting evidence justifying that the impugned loss represents from the trading activities in derivatives and it fulfills the conditions as specified u/s.43(5)(d) of the Act. Accordingly, the AO treated the loss of ₹ 3,66,76,119/- as speculative in nature. 6. The assessee carried the matter to the Ld. CIT (A) and submitted that all the necessary supporting pieces of evidence were filed before the AO during the assessment proceeding. The assessee also claimed that such loss was accepted as non-speculative by the AO during the assessment proceeding. 6.1 The transactions were carried out electronically on screen based system through the broker namely J.M. Finance Services limited which is recognized wi .....

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..... ssessee claimed that such loss is not speculative in pursuance to the provisions of clause (d) of subsection 5 of section 43 of the Act. However, the AO treated such loss as speculative by observing that the assessee failed to substantiate his claim from documentary evidence during the assessment proceedings. 9.1 However, the Ld. CIT(A) reversed the order of the AO by observing that the assessee duly furnished all the supporting pieces of evidence during the assessment proceedings as well as before him. Accordingly the Ld. CIT(A) reversed the order of the AO. 9.2 At this juncture, we find pertinent to refer to the provisions of section 43(5)(d) of the Act, which reads as under: (5) 32"speculative transaction" 33 means a transactio .....

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..... from the AO on the documents furnished by the assessee before him. But the AO failed to file any remand report to the Ld. CIT(A) despite several reminders issued to him. 9.7 We also note that the assessee vide letter dated 19th February 2015 has furnished the details before the AO as given under: in our case, the F&O transactions are carried out electronically on screen based system through a stock broker viz JM financial services private Ltd which are recognised stock brokers with national stock exchange of India Ltd (NSE) and the transactions are supported by our time stamped contract notes. The contract notes and bills/invoices issued by NSE in enclosed herewith 9.8 The AO in his assessment order has referred to the submission filed .....

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