DCIT 14(1)(1), MUMBAI vs. BLUE BERRY TRADING CO P.LTD, MUMBAI

ITA 3568/MUM/2016Status: DisposedITAT Mumbai08 August 2022AY 2011-1213 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the Explanation to Section 73 of the Income Tax Act, which deems certain share trading activities as speculation business, has exceptions. The assessee's gross total income, which included substantial income from house property, capital gains, and other sources, fell under these exceptions.

What were the facts?

The assessee, a private limited company, incurred losses in share trading, futures, and options. The Assessing Officer treated these losses as speculation losses under Section 73 of the Income Tax Act. The Commissioner (Appeals) reversed this decision.

What were the issues?

Whether the losses incurred by the assessee in share trading and derivative transactions are to be treated as speculation loss under Section 73 of the Income Tax Act, considering the exceptions provided in the Explanation to the section.

Which sections of the Income-tax Act were involved?

Section 73

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Cases cited in this judgment(3)Show list

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Income Tax Appellate Tribunal, ‘D‘ BENCH

Before: SHRI M.BALAGANESH & SHRI PAVAN KUMAR GADALE

For Appellant: Shri Nitesh Joshi
For Respondent: Shri Ajay Chandra
Hearing: 10/05/2022Pronounced: 08/08/2022

PER M. BALAGANESH (A.M):

This appeal in ITA No.3568/Mum/2016 for A.Y.2011-12 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-8, Mumbai in appeal No.CIT(A)-8/IT-328/14-15 dated 16/02/2016 (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 14/02/2014 by the ld. DCIT-3(1), Mumbai (hereinafter referred to as ld. AO).

2 M/s. Blue Berry Trading Co.Pvt.Ltd.,

2.

The Revenue has raised the following grounds:-

1.

"Whether on fact and in the circumstances of the case, the learned CIT(A) erred in holding that explanation t

The order continues below.

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