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TMI Blog2019 (7) TMI 696X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue has proposed the following substantial question of law: "Whether the Appellate Tribunal has erred in law and on facts in upholding the decision of CIT(A) in deleting the disallowance of Rs. 3,66,76,119/made on account of F & O Loss?" 3 We take notice of the fat that the assessee is a manufacture private limited company and engaged in the business of trading in derivatives renting of motorcar and also deriving income under the head "house property". The assessee, in its profit and loss account, has claimed loss of Rs. 3,66,76,119/on account of trading in derivatives. The assessee claimed to have carried its trading activities in the derivatives through a recognized stock exchange. The Assessing Officer came to the conclusion th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 43(5) of the Act: ".... (5) "speculative transaction" means a transaction in which a contract for the purchase or sale of any commodity, including stocks and shares, is periodically or ultimately settled otherwise than by the actual delivery or transfer of the commodity or scrips: Provided that for the purposes of this clause- (a) (b) (c) (d) an eligible transaction in respect of trading in derivatives referred to in clause (nc) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) carried out in a recognised stock exchange; or The explanation 1 to this clause also explains what an 'eligible transaction' and 'recognized stock exchange mean. 6.2.1 In this case, it is seen from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 assesee 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) "Speculative transaction" means a transaction in which a contract for the purchase or sale of any commodity including stocks and shares, is periodically or ultimately settled otherwise than by the actual delivery or transfer of the commod ..... X X X X Extracts X X X X X X X X Extracts X X X X
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