BHUPESH S.SHAH PROP KHUSHBU IMPEX,MUMBAI vs. ASST CIT 17(1), MUMBAI

ITA 3892/MUM/2016Status: DisposedITAT Mumbai21 February 2018AY 2012-133 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the assessee's commodity derivative transactions were not covered by the relied-upon CBDT notification. Consequently, the loss could not be treated as a business loss for set-off purposes.

What were the facts?

The assessee suffered a loss of Rs. 11.58 Lacs on commodity derivatives in MCX and NCDEX. The Assessing Officer (AO) treated this loss as speculative, disallowing its set-off against other income. The assessee relied on a CBDT notification, but the AO and CIT(A) found it inapplicable.

What were the issues?

Whether losses from trading in commodity derivatives on MCX and NCDEX are to be treated as business loss or speculative loss. Applicability of CBDT notification to the specific commodity exchange transactions.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “H” BENCH, MUMBAI

Before: SHRI MAHAVIR SINGH, JM & SHRI MANOJ KUMAR AGGARWAL, AM

Per Manoj Kumar Aggarwal (Accountant Member) 1. The captioned appeal by assessee for Assessment Year [AY] 2012-13 contest the order of Ld. Commissioner of Income-Tax (Appeals)-28 [CIT(A)], Mumbai, Appeal No.CIT(A)-28/IT-936/AC- 17(1)/2014-15 dated 13/04/2016 by raising the following Ground of Appeal: - ITA.No.3892/Mum/2016 Bhupesh S. Shah Assessment Year 2012-13 Loss in Trading of Commodities treated as speculative loss in place of Business loss. MCX & NCDEX as Speculative loss instead of as business loss. The same was explained to AO through case law about retrospective applicability of notification from 2006 notification 46/2009 of CBDT dated 22/05/2009. The learned AO is of the opinion that MCX differ from MCX-SX, means that trading in stock exchange differs, thus resulting loss is speculative one.

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