TMI Blog1992 (11) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... and the 'gunny hedge account', respectively, represent business losses and not speculation losses ? " The assessee is a firm carrying on business in the purchase and sale of cloth, jute, bardan, etc. The assessment year is 1971-72. During the relevant previous year, the hessian account showed a profit of Rs. 1,32,044 in a business of 970 bales against which a loss in the 'hessian hedge account of Rs. 34,870 was claimed as loss from ready business. Similarly, a sum of Rs. 8,148 was claimed as loss incurred in the bardan hedge account. The Income-tax Officer disallowed both these losses on the ground that they were in the nature of speculation losses as the contract had been settled otherwise than by delivery. The matter was taken up in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 purpose of this clause (a) a contract in respect of raw materials or merchandise entered into by a person in the course of his manufacturing or merchanting business to guard against loss through future price fluctuations in respect of his contracts for actual delivery of goods manufactured by him or merchandise sold by him ; or (b) a contract in respect of stocks and shares entered into by dealer or investor therein to guard against loss in his holdings of stocks and shares through price fluctuations ; or ... ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny merit in the submission of the Revenue that the benefit of the proviso is available only to manufacturers in respect of purchase of raw materials. It clearly applies also to persons carrying on merchanting business. So far as the facts are concerned the finding is clear as set out above. The requirements of this proviso are fully met in this case. Both the Appellate Assistant Commissioner and the Tribunal have arrived at a concurrent finding of fact. There is no challenge to this finding by raising any specific question in regard to its perversity or otherwise. Under the circumstances, the finding of fact is binding. If that be so, proviso (a) to section 43(5) clearly applies to the facts of the present case. In view of the foregoing d ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
