Commissioner of Incometax v. Panchmahal Steel Ltd.

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The Tax Publishers2013 TaxPub(DT) 1579 (Guj-HC) : (2014) 055 (I) ITCL 0002 : (2013) 215 TAXMAN 0140 IN THE Gujarat High Court Akil Kureshi & Sonia Gokani, J.J. CIT v. Panchmahal Steel Ltd. Tax Appeal No. 131 of 2013 28 March, 2013 In favour of assessee. Section 43(5) of the Income-tax Act, 1961 - Speculative transactions (Forward contract) Appellant by : K.M. Parikh ORDER *Akil Kureshi, J.* Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal dated 13-7-2012 raising following questions for our consideration : 'Whether, the Tribunal erred in deleting disallowance of Rs. 34,88,834 made on account of loss claimed due to cancellation of forward contract thereby overviewing the fact that transactions in question fell within the definition of speculative transaction as per section 43(5) of the Income Tax Act? 2. Tribunal in the impugned judgment relied on its own decision in case of CIT v. Friends and friends Shipping Pvt. Ltd. which was carried in appeal before this Court. This Court had also by judgement 23-8-2011 in Tax Appeal No. 251/2010 upheld the decision of the Tribunal. In the said judgement, this Court had made following observations : SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2013 TaxPub(DT) 1579 (Guj-HC) : (2014) 055 (I) ITCL 0002 : (2013) 215 TAXMAN 0140

IN THE Gujarat High Court

Akil Kureshi & Sonia Gokani, J.J.

CIT v. Panchmahal Steel Ltd.

Tax Appeal No. 131 of 2013

28 March, 2013

In favour of assessee.

Section 43(5) of the Income-tax Act, 1961 - Speculative transactions (Forward contract)

Appellant by : K.M. Parikh

ORDER

Akil Kureshi, J.

Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal dated 13-7-2012 raising following questions for our consideration :

'Whether, the Tribunal erred in deleting disallowance of Rs. 34,88,834 made on account of loss claimed due to cancellation of forward contract thereby overviewing the fact that transactions in question fell within the definition of speculative transaction as per section 43(5) of the Income Tax Act?

2. Tribunal in the impugned judgment relied on its own decision in case of CIT v. Friends and friends Shipping Pvt. Ltd. which was carried in appeal before this Court. This Court had also by judgement 23-8-2011 in Tax Appeal No. 251/2010 upheld the decision of the Tribunal. In the said judgement, this Court had made following observations :