EDIL COMMODITIES LTD,MUMBAI vs. DCIT CIR 3(1), MUMBAI

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ITA 3426/MUM/2016Status: DisposedITAT Mumbai06 April 2018AY 2011-1221 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the mark-to-market loss in derivatives, held as stock-in-trade, is allowable. It ruled that CBDT instructions are not binding on appellate authorities when they contradict Supreme Court decisions on stock valuation.

What were the facts?

The assessee claimed set off of brought forward non-speculative loss against current year's speculative income. The Assessing Officer rejected this claim, stating no brought forward speculative loss was available. The CIT(A) upheld the AO's decision, interpreting Section 72 and 73 of the IT Act as preventing such set-off.

What were the issues?

Whether brought forward non-speculative business loss can be set off against current year's speculative income, and the allowability of mark-to-market losses on derivatives held as stock-in-trade.

Which sections of the Income-tax Act were involved?

Section 72,Section 73

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(3)Show list

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Income Tax Appellate Tribunal, “D” BENCH, MUMBAI

Before: SHRI SHAMIM YAHYA, AM & SHRI AMARJIT SINGH, JM

For Appellant: Shri Vijay Mehta, Shri Ram Tiwari
For Respondent: Shri Ram Tiwari

Heard together (2 matters)

I.T.A. No.3426/Mum/2016
I.T.A. No.3576/Mum/2016

Read from the judgment's own cause title. This page is filed under one of them.

order of the ld. Commissioner of Income Tax (Appeals). We uphold the order of the ld. Commissioner of Income Tax (Appeals) that the mark to market loss in this case is allowable.

21 & 3576/Mum/2016 M/s. Edel Commodities Limited 33. In the result, these appeals by the assessee stands partly allowed. प�रणामतः �नधा�रती क� अपील� आं�शक �वीकृत क� जाती है । Order pronounced in the open court on 06.04.2018 Sd/- Sd/- (Amarjit Singh) (Shamim Yahya) �या�यक सद�य / Judicial Member लेखा सद�य / Accountant Member मुंबई Mumbai; �दनांक Dated : 06.04.2018 व.�न.स./Roshani, Sr. PS आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : अपीलाथ� / The Appellant 1. ��यथ� / The Respondent 2. आयकर आयु�त(अपील) / The CIT(A) 3. आयकर आयु�त / CIT - concerned 4. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, मुंबई / DR, ITAT, Mumbai 5. गाड� फाईल / Guard File 6. आदेशानुसार/ BY ORDER,

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