DCIT CIR 4 (2)(1), MUMBAI vs. M/S QUANT SECURITIES PVT LTD., MUMBAI

ITA 7756/MUM/2019Status: DisposedITAT Mumbai02 September 2022AY 2014-158 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the assessee's case falls under the exception clause of Explanation to Section 73 of the Income Tax Act, as its gross total income mainly comprised income from other sources. Therefore, the loss on shares and derivatives could not be treated as speculative loss.

What were the facts?

The assessee, a share broker, incurred a loss of Rs 1,13,24,176/- from trading in shares and derivatives. The Assessing Officer treated this loss as speculative loss and disallowed it, apportioning expenses accordingly. The CIT(A) granted relief to the assessee.

What were the issues?

Whether the share trading loss is speculative loss, and if the exception under Explanation to Section 73 of the IT Act is applicable to the assessee.

Which sections of the Income-tax Act were involved?

Section 73,Section 43(5)

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Income Tax Appellate Tribunal, ‘D‘ BENCH

Before: SHRI AMIT SHUKLA & SHRI M.BALAGANESH

For Appellant: Shri Jitendra Sanghvi & Shri Amit
For Respondent: Smt. Mahita Nair
Hearing: 25/08/2022Pronounced: 02/09/2022

PER M. BALAGANESH (A.M):

This appeal in ITA No.7756/Mum/2019 for A.Y.2014-15 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-9, Mumbai in appeal No.CIT(A)-9/Cir-4/349/2016-17 dated 31/10/2019 (ld. CIT(A) in short) against the order of assessment passed u/s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 26/12/2016 by the ld. Asst. Commissioner of Income Tax-4(2)(1), Mumbai (hereinafter referred to as ld. AO).

2 M/s. Quant Securities Pvt. Ltd.,

2.

The only issue to be decided in this appeal is as to whether the ld. CIT(A) was justified in treating the share trading loss as not speculative loss on the

The order continues below.

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