SMT RASHMI RAMESH DAMANI,MUMBAI vs. DCIT, CIRCLE 17(1), MUMBAI

ITA 1129/MUM/2025Status: DisposedITAT Mumbai02 January 2026AY 2014-15Bench: SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER SHRI PRABHASH SHANKAR (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The ITAT held that commodity derivative transactions on NSEL, backed by delivery of commodities, are not speculative. The bad debt arising from these transactions is allowable as a business loss.

What were the facts?

The assessee claimed business loss from commodity derivative transactions on NSEL. The Assessing Officer treated these as speculative transactions and disallowed the loss. The CIT(A) partly allowed the appeal.

What were the issues?

Whether commodity derivative transactions on NSEL are speculative, and if bad debts arising from them are allowable business losses.

Which sections of the Income-tax Act were involved?

Section 43(5),Section 28,Section 36(1)(vii),Section 36(2)

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Cases cited in this judgment(3)Show list

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Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI

[ Per Rahul Chaudhary, Judicial Member:

1.

The present appeal preferred by the Assessee is directed against the order, dated 27/05/2021, passed by the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘the CIT(A)’] whereby the Ld. CIT(A) had partly allowed the appeal against the Assessment Order, dated 30/12/2016, passed under Section 143(3) of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’] for the Assessment Year 2014-2015. 2. The Assessee has raised following grounds of

The order continues below.

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