MESERS P.D SEKHSARIA TRADING COMPANY,BATHINDA vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1, BATHINDA

ITA 331/ASR/2018Status: DisposedITAT Amritsar18 March 2019AY 2014-1539 pages
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What did the Tribunal hold?

The Tribunal held that the transactions in agricultural commodity derivatives should not be treated as speculative, even if CTT was not paid, due to a curative amendment. The loss is allowed to be set off against business income.

What were the facts?

The assessee claimed a loss of Rs. 4,69,47,808/- from trading in commodity derivatives. The Assessing Officer treated these transactions as speculative because the exchange (NCDEX) was recognized after the transaction dates and Commodity Transaction Tax (CTT) was not paid.

What were the issues?

Whether losses from trading in agricultural commodity derivatives are speculative if CTT was not paid and the exchange was recognized later. Whether a subsequent curative amendment to Section 43(5) is retrospective.

Which sections of the Income-tax Act were involved?

Section 43(5)

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Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR

Before: Sh. N. S. Saini & Sh. N. K. Choudhry

For Appellant: Shri. Salil Kapoor, Adv. &, Shri. Sanat Kapoor, Adv
For Respondent: Shri. M. P. Singh, CIT DR
Hearing: 20.02.2019Pronounced: 19.03.2019

Per N. S. Saini, Accountant Member:

This is an appeal filed by the assessee against the order of CIT(A), Bathinda dated 26.03.2018. 2. The assessee has raised following grounds of appeal:

“1. That on the facts and circumstances of the case the addition/disallowance of Rs.4,69,47,808/- made

ITA No. 331/Asr./2018 2 SA

The order continues below.

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