The Tax Publishers2020 TaxPub(DT) 2972 (Mad-HC) : (2020) 427 ITR 0120 : (2020) 273 TAXMAN 0312

INCOME TAX ACT, 1961

Section 72

Where on issue as to whether losses arising out of dealings and transaction in which assessee did not ultimately take delivery of shares or give delivery of shares, could be set off against income arising out of dealings and transactions in actual buying and selling of shares, Tribunal remanded matter back to AO, there was no need to pronounce merits of case by High Court, as matter was only remanded to AO.

Loss - Set-off of losses arising out of dealings in which assessee did not ultimately take delivery against income arising out of dealings in actual trading of shares - Remand order of Tribunal whether required interference of Court -

Issue arose as to whether losses arising out of dealings and transaction in which assessee did not ultimately take delivery of shares or give delivery of shares, could be set off against income arising out of dealings and transactions in actual buying and selling of shares. Held: Order of Tribunal clearly showed that matter was only remanded to AO with similar directions given by Tribunal in its earlier decision in case of Aishwarya & Company Private Ltd. Assessee submitted that while remanding case to AO, Tribunal gave certain directions and its views about Exchange Fluctuations to be treated as speculative loss or business loss and therefore, it was not an open remand which was likely to prejudice case of the assessee while AO passes a fresh order upon such remand.

Followed:Dy. CIT v. M/s. Aishwarya & Co. P. Ltd. [ITA No. 860/Mds/2014 vide order dt. 29-5-2015]

REFERRED : CIT v. M/s. Baljit Securities Pvt. Ltd. .(2014) 88 CCH 313 (Cal) : 2014 TaxPub(DT) 2452 (Cal-HC) CIT v. Friends And Friends Shipping Pvt. Ltd. (2013) 217 Taxman 267 (Guj) : 2013 TaxPub(DT) 1447 (Guj-HC) Bengal & Assam Company Ltd. v. CIT (2009) 227 CTR 399 (Cal) : 2009 TaxPub(DT) 1939 (Cal-HC) CIT v. Badridas Gauridu (P.) Ltd. (2003) 261 ITR 256 (Bom) : 2003 TaxPub(DT) 0952 (Bom-HC) CIT v. Gourepore Co. Ltd. 1982 TaxPub(DT) 0291 (Cal-HC) M/s. Capricorn Food Products India Ltd. v. Asstt. CIT & Vice-Versa. [I.T.A.No.2179/Mds/2015, I.T.A.No.2160/Mds/2015, dt. 27-5-2016] Araska Diamond Pvt. Ltd. v. ACIT (2014) 152 ITD 203 (Mum) : 2014 TaxPub(DT) 4161 (Mum-Trib)

FAVOUR : Against the assessee

A.Y. : 2008-09

IN THE MADRAS HIGH COURT

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