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Facts
The assessee declared 'Nil' income for AY 2016-17. The Assessing Officer made additions of Rs. 12,59,537/- (income from house property) and Rs. 1,04,155/- (income from other sources) by treating losses from share and derivative transactions (Rs. 18,39,385/-) as speculative. The CIT(A) dismissed the assessee's appeal.
Held
The Tribunal held that the requirement of auditing account books was not applicable to the assessee as their turnover was less than the prescribed limit. Therefore, the claim of the assessee for setting off the business loss against other income deserved to be allowed.
Key Issues
Whether the loss from share and derivative transactions can be treated as speculative and set off only against speculative income, or as a business loss deductible from other income, considering the turnover and audit requirements.
Sections Cited
43(5), 143(2), 142(1), 44AB, 44AD, 73
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JAIPUR BENCHES,”SMC-Bench” JAIPUR
Before: SHRIGAGAN GOYAL, AM& SHRI NARINDER KUMAR, JM
As a result, the assessment order passed by the Assessing Officer and confirmed by Learned CIT(A), though for different reasons, deserves to be set aside. Similarly, the impugned order passed by Learned CIT(A) also deserves to be set aside.
Consequently, this appeal is allowed. File be consigned to the record room after the needful is done by the office. Order pronounced in the open court on 13/10/2025.
Sd/- Sd/- ¼xxu xks;y½ ¼ujsUnz dqekj½ (GAGAN GOYAL) (NARINDER KUMAR) ys[kk lnL; @Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 13/10/2025 *Santosh आदेश की प्रतिलिपिअग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. The Appellant- Nirmal Kumar Dugar, Jaipur 2. izR;FkhZ@ The Respondent- ITO, Ward 2(1), Jaipur 3. vk;djvk;qDr@ Theld CIT