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The Tax PublishersITA No. 2292/Mum/2018 and ITA Nos. 4026 & 4027/Mum/2018
2020 TaxPub(DT) 3915 (Mum-Trib)INCOME TAX ACT, 1961
Section 43(5)
Commodity derivatives transactions were not excluded from the definition of speculative transactions under section 43(5) before assessment year 2014-15 and hence, all transactions in commodity derivatives in any exchanges were speculative transactions and consequent profit or loss earned therefrom was a speculative profit and accordingly, loss or profit from different exchanges were to be set-off against each other.
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Loss - Set-off of loss - Commodity derivative transactions -
Assessee claimed set-off of loss incurred from derivative trading on NMCE, Ahmedabad as speculation loss against profit earned from derivative trading in MCX. AO disallowed this holding that profit earned from MCX was not speculative profit. Held: Commodity derivatives transactions were not excluded from the definition of speculative transactions under section 43(5) before assessment year 2014-15 and hence, all transactions in commodity derivatives in any exchanges were speculative transactions and consequent profit or loss earned there from was a speculative profit and accordingly, loss or profit from different exchanges were to be set off against each other.
Supported by:I v. Kamani Tubes Ltd. (1994) 07 ITR 271 (Bom) : 1994 TAxPub(DT0 614 (Bom-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2014-15
INCOME TAX (APPELLATE TRIBUNAL) RULES, 1963
Section 34(5)(c)
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