CIT v. Concord Commercial Pvt. Ltd.

95 ITD 117Income Tax Appellate Tribunal2005#3496 most cited

What is CIT v. Concord Commercial Pvt. Ltd. authority for?

The aggregate of business profits and losses from derivative transactions must be worked out before applying the Explanation to Section 73 of the Income-tax Act, 1961. This means that trading of shares and derivative transactions are not considered speculative transactions under Section 43(5) for the purposes of Sections 28 to 41.

34

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2015 to 2022.

Also referred to as

CIT v. Concord Commercial Pvt. Ltd. · 95 ITD 117 · Section 43(5) · Section 73 · Explanation to Section 73 · derivative transactions · speculation · business profit loss · share delivery · share derivative

Issues it is cited on

section 43(5)section 254section 43section 13transferopportunity of being heardcompanysection 143(3)indiatotal incomebusinessinterest

Judgments citing CIT v. Concord Commercial Pvt. Ltd.

M/S Elem Investments Pvt.Ltd., Hyderabad vs. ACIT, Hyderabad

In the result, appeal of assessee for AY

ITA 731/HYD/2006[2003-04]Status: DisposedITAT Hyderabad03 Aug 2018AY 2003-04

Bench: Smt. P. Madhavi Devi & Shri B. Ramakotaiahappellant Respondent

For Appellant: Shri K.C. Devdas, ARFor Respondent: Smt. Suman Malik, DR
Section 37(1)Section 40A(2)

…to set-off the business loss against its income from other sources viz., interest and :- 7 -: M/s. Elem Investments Pvt. Ltd., dividend income. Assessee relied on the decision of Rajan Enterprises Pvt. Ltd., [41 ITD 469] (Bom), Concord Commercial Pvt. Ltd., [95 ITD 117] (Mum.)(SB) and Godavari Capital Ltd., [91 ITD 274] (Hyd). 5.1. Ld.CIT(A), however, did not agree and after analyzing the agreement entered into on 16-08-2001 with the promoters of DQ and the case law on the subject and also the fact that the said company has allotted shares subsequently to various persons at higher price than the purchase cost,…

ITO, WD-6(3), Kolkata vs. M/S Natraj Vinimay Pvt. Ltd., Kolkata

In the result, the appeal of the revenue is dismissed

ITA 1401/KOL/2016[2009-10]Status: DisposedITAT Kolkata10 Jan 2018AY 2009-10

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri M.Balaganesh, Am ] I.T.A No. 1401/Kol/2016 Assessment Year : 2009-10 Ito, Ward-6(3), Kolkata -Vs- M/S Natraj Vinimay Pvt. Ltd. [Pan: Aaccn 4643 D] (Appellant) (Respondent)

For Appellant: Shri G.Hangshing, CIT DRFor Respondent: Shri Subash Agarwal, Advocate
Section 143(3)Section 73

…& Industries Ltd. vs. CIT reported in 208 ITR 1023 (Cal) and Mumbai Tribunal decision in the case of Rajan Enterprises Pvt. Ltd. vs. ITO reported in 41 ITD 469 ; Special Bench of Mumbai Tribunal in the case of ACIT vs. Concord Commercial Pvt. Ltd. reported in 95 ITD 117; Kolkata Tribunal decision in the case of ACIT vs. Blue Cheap Capital Market in I.T.A. No. 2211/Kol/2004 & Kolkata Tribunal in the case of Lokpriya Trade and Agency Pvt. Ltd. in I.T.A. No. 1781/Kol/2010, held that the assessee’s case based on the income criterion, falls outside the ambit of explanation to section 73 of 3 4 M/s Natraj Vinimay Pvt.…

ITO, WD-2(4), Kolkata vs. M/S Suvridhi Capital Markets Ltd., Kolkata

In the result, both the appeals filed by the Revenue (ITA No

ITA 830/KOL/2015[2008-2009]Status: DisposedITAT Kolkata31 Aug 2017AY 2008-2009

Bench: Shri N. V. Vasudevan, Jm & Dr. A.L.Saini, Am आयकर अपील सं./Ita No.830 & 831/Kol/2015 (िनधा"रण वष" / Assessment Year: 2008-09 & 2010-11) Vs. M/S Suvridhi Capital I.T.O., Ward – 2(4), Kolkata Markets Ltd. 516, Kamalalaya Centre, 156A, Lelin Sarani, Kolkata – 700 013. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaecs 4092 F ( Appellant) .. (Respondent) Appellant By :Shri G. H. Sema, Acit(Dr) Respondent By :Shri Ashis Kumar Rustogi, Fca सुनवाई की तारीख / Date Of Hearing : 17/08/2017 घोषणा की तारीख/Date Of Pronouncement : 31/08/2017 आदेश / O R D E R Per Dr. Arjun Lal Saini, Am: These Two Captioned Appeals Filed By The Revenue Pertaining To Assessment Year 2008-09 & 2010-11, Are Directed By Order Passed By The Ld. Commissioner Of Income Tax (Appeals), Which Is In Turn Arises Out Of Assessment Orders Passed By The Assessing Officer U/S 143(3) Of The Income Tax Act, 1961 (Hereinafter Referred To As The ‘Act’). 2. Since These Two Appeals Filed By The Revenue Pertain To Same Assessee, Different Assessment Years & Identical Issues Are Involved, Therefore, These Have Been Clubbed & Heard Together & A Consolidated Order Is Being Passed For The Sake Of Convenience & Brevity. The Revenue`S Appeal In Ita No.830/Kol/2015, Assessment Year 2008-09, Is Taken As A Lead Case.

For Appellant: Shri G. H. Sema, ACIT(DR)For Respondent: Shri Ashis Kumar Rustogi, FCA
Section 143(1)Section 143(2)Section 143(3)Section 43(5)Section 73

…IN THE INCOME TAX APPELLATE TRIBUNAL “B”, BENCH KOLKATA BEFORE SHRI N. V. VASUDEVAN, JM & DR. A.L.SAINI, AM आयकर अपील सं./ITA No.830 & 831/Kol/2015 (िनधा"रण वष" / Assessment Year: 2008-09 & 2010-11) Vs. M/s Suvridhi Capital I.T.O., Ward – 2(4), Kolkata Markets Ltd. 516, Kamalalaya Centre, 156A, Lelin Sarani, Kolkata – 700 013. "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAECS 4092 F ( APPELLANT) .. (RESPONDENT) Appellant by :Shri G. H. Sema, ACIT(DR) Respondent by :Shri Ashis Kumar Rustogi, FCA सुनवाई की तारीख / Date of Hearing : 17/08/2017 घोषणा की तारीख/Date of Pronouncement : 31/08/2017 आदेश / O R D E R Per Dr. A…

D.C.I.T Cir - 5, Kolkata vs. M/S Raima Equities Pvt Ltd, Kolkata

In the result, the appeal of the revenue is dismissed

ITA 1994/KOL/2013[2009-10]Status: DisposedITAT Kolkata11 Aug 2016AY 2009-10

Bench: Shri M. Balaganesh, Am & Shri K. Narasimha Chary, Jm]

For Appellant: Shri Divakar Chakraborty, JCIT, Sr. DRFor Respondent: ShriAshok Kr. Tulsyan, FCA &
Section 143(3)Section 43Section 73

…trading loss and profit from derivative transactions should be done before the application of the Explanation to Section 73 of the Act. We also find that the Special Bench of Mumbai Tribunal in the case of CIT vs Concord Commercial Pvt Ltd reported in (2005) 95 ITD 117 (Mum) (SB) had held that before making application of Explanation to Section 73 of the Act, set off of all business income should be allowed. The ld AR argued that the income from share trading, speculative transactions and derivative transactions (F&O) are to be held cumulatively as speculative transactions and the profit and loss to be adjusted…

ITO, Ward-5(4), Kolkata vs. M/S. Fortune Interfinance Ltd., Kolkata

In the result, the appeal of the Revenue is dismissed

ITA 2064/KOL/2014[2010-2011]Status: DisposedITAT Kolkata05 Aug 2016AY 2010-2011

Bench: Shri P.M. Jagtap

Section 43(5)Section 73

…was, as such, no bar in setting off the loss arising out of derivatives from the income arising out of buying and selling of shares. This is what the learned Tribunal has done.” b) Mumbai Tribunal, Special Bench in CIT vs Concord Commercial Pvt Ltd in (2005) 95 ITD 117 (Mum) (SB) , wherein it was held that : “Before considering whether the assessee’s case is hit by the deeming provision of Explanation to Section 73 of the Act, the aggregate of business profit / loss has to be worked out based on the non-speculative profits, either it is from share delivery or from share derivative.” c) Decision of Hon’ble Delh…

DCIT, Circle - 6, Kolkata vs. Loknath Saraf Securities Ltd., Kolkata

In the result, to sum up ITA No

ITA 852/KOL/2008[2003-04]Status: DisposedITAT Kolkata08 Jul 2016AY 2003-04

Bench: Shri P.M. Jagtap & Shri S.S. Viswanethra Ravi

Section 43(5)Section 73

…ed into by the assessee-company were part of one composite business. In support of this contention, he relied, besides various decisions of this Bench, on the decision of Mumbai, Special Bench of ITAT in the case of ACIT –vs.- Concord Commercials (P) Limited [95 ITD 117 (Mum.), Hyderabad Bench of ITAT in the case of Godavari Capital Limited –vs.- DCIT [91 ITD 274]. I.T.A. No. 852/KOL./2008 Assessment year: 2003-2004 Assessment Year: 2005-2006, Assessment Year: 2005-2006 & Assessment Year: 2008-2009 Page 14 of 27 9. We have considered the rival submissions and also perused the relevant material available on rec…

Lenient Finvest P . Ltd, Mumbai vs. ITO 2(2)(2), Mumbai

In the result, the appeal of the assessee is allowed

ITA 1017/MUM/2013[2001-02]Status: DisposedITAT Mumbai22 Jun 2016AY 2001-02

Bench: Sri Mahavir Singh, Jm & Sri Ramit Kochar, Am M/S. Lenient Finvest Pvt. Ltd., Vs. The Income Tax Officer, (Formerly Known As M/S. Leesha Ward-2 (2) 2, Mumbai, Investment Finvest Ltd.) Aayakar Bhavan, Crescent Chambers, 3 Rd Floor, M. K. Road, Mumbai 56, Tamarind Lane, Fort, Mumbai 400 023 Pan: Aaacl 1823 B .. Appellant Respondent Appellant By Dr. K. Shivram & Ms. Neelam Jadher, Ars Respondent By Shri S. C. Tiwari, Dr Date Of Hearing 15-06-2016 Date Of Pronouncement 22-06-2016 O R D E R Per Mahavir Singh, Jm: This Appeal By The Assessee Is Arising Out Of The Order Of The Cit (A)-5, Mumbai Passed In Appeal No.Cit (A)-5/Ito 2(2)(2)/It-16/2011-2012 Dated 29-11-2012. Assessment Was Framed By The Ito, Ward -2(2) (2), Mumbai For Assessment Year 2001- 02 Vide His Order Dated 20-12-2008 Passed U/S 143(3) Of The Income Tax Act, 1961 (Hereinafter Referred To As “The Act”) Read With Section 254C Of The Act. The Penalty Under Dispute Was Levied By The Ito, Ward- 2(2) (2), Mumbai U/S 271 (1) (C) Of The Act Vide Order Dated 29-03-2006. 2. The Only Issue In This Appeal Of The Assessee Is Against The Order Of The Cit (A) Confirming Levy Of Penalty U/S 271 (1) (C) Of The Act Amounting To Rs.20,04,501/-.

Section 143(3)Section 254CSection 271Section 271(1)Section 73

…of shares of other companies treating the same as trading loss/business loss. The learned Counsel for the assessee explained that this position is prior to the decision of the Special Bench of the Tribunal in the case of ACIT Vs Concord Commercial Pvt. Ltd. [95 ITD 117 (Mum.) (SB)]. The learned Counsel for the assessee also drew our attention to the penalty order page 3 the following paragraph:- “As discussed above, it has been established that the assessee by furnishing inaccurate particulars of income, has deliberately and consciously concealed the particulars of income. This has been also proved by the Assess…

J.G.A Shah Share Brokers P.Ltd, Mumbai vs. DCIT Cir 4(3), Mumbai

In the result, the appeal filed by the assessee is partly allowed

ITA 4053/MUM/2013[2009-10]Status: DisposedITAT Mumbai16 Mar 2016AY 2009-10

Bench: Shri C.N. Prasad & Shri Ashwani Tanejaassessment Year: 2009-10 J.G.A Shah Share Brokers P. Dcit Cir 4(3) Ltd. Aayakar Bhavan, बनाम/ 24B, 3Rd Floor, Rajabahadur M.K. Road, Vs. Manison, Hamam Street, Fort Mumbai-400020 Mumbai- 400001 (Assessee) (Revenue) P.A. No.Aaacj3477H

Section 143(3)Section 14ASection 73

…roposition that all the transactions have to be clubbed together before applying explanation to section 73: 1. CIT v. DLF Commercial Developers Ltd. 261 CTR 127(Cal) 2. CIT v. Baljit Securities P. Ltd. 275 CTR 335 (Cal) 3. ACIT v. Concord Commercials (P) Ltd. 95 ITD 117 4. Majestic Exports v. JCIT, ITAT Chennai 172 TTJ 504 3.4. He also drew our attention on page no. 72 of the paper book containing brief history of the assessee, showing that neither in the preceding years nor in subsequent years, business transactions of the assessee were broken into two parts and income has always been assessed as normal busines…

Lohia Securities Ltd., Kolkata vs. DCIT, Circle - 6, Kolkata

In the result, the appeal of the assessee is allowed

ITA 487/KOL/2012[2008-2009]Status: DisposedITAT Kolkata09 Dec 2015AY 2008-2009

Bench: : Shri M. Balaganeshita No. 487/Kol/2012 A.Y 2008-09 M/S. Lohia Securities Ltd Vs. Dcit, Circle-6, Kolkata Pan: Aaacl 5834A (Appellant) (Respondent)

For Appellant: Shri Dilip Kumar Patni, CA, ld.ARFor Respondent: Shri G. Mallikarjuna, CIT, ld.DR
Section 143(3)Section 43(5)Section 43(5)(d)Section 73

…was, as such, no bar in setting off the loss arising out of derivatives from the income arising out of buying and selling of shares. This is what the learned Tribunal has done.” b) Mumbai Tribunal, Special Bench in CIT vs Concord Commercial Pvt Ltd in (2005) 95 ITD 117 (Mum) (SB) , wherein it was held that : “Before considering whether the assessee’s case is hit by the deeming provision of Explanation to Section 73 of the Act, the aggregate of business profit / loss has to be worked out based on the non- speculative profits, either it is from share delivery or from share derivative.” c) Decision of Hon’ble Delhi…

K.B. Capital Markets (P) Ltd., Kolkata vs. DCIT, Circle - 6, Kolkata

In the result, the appeal of revenue as well as that of the assessee, both are partly allowed

ITA 607/KOL/2011[2007-08]Status: DisposedITAT Kolkata05 Nov 2015AY 2007-08

Bench: Shri Mahavir Singh, Jm & Shri Waseem Ahmed, Am]

For Appellant: Shri Akkal Dudhwewala, ACAFor Respondent: Shri P. K. Chakraborty, JCIT, Sr. DR
Section 143(3)Section 14ASection 35(1)(ii)Section 80G

…identical facts the Coordinate Bench in the case of DCIT Vs. Baljit Securities Private Limited in ITA No. 1183/Kol/2012 dated 21.10.2014 has considered this issue by following Special Bench of Mumbai in the case of CIT Vs. Concord Commercial Pvt. Ltd. (2005) 95 ITD 117 (Mum SB), wherein it is held as under: “5. We have heard rival submissions and gone through facts and circumstances of the case. The assessee is engaged in the business of share trading which involves stock and share broking activities, purchase and sale of delivery based shares and purchase & sale of non-delivery based shares i.e., derivative tr…

DCIT, Circle - 6, Kolkata vs. M/S. K. B. Capital Ltd., Kolkata

In the result, the appeal of revenue as well as that of the assessee, both are partly allowed

ITA 582/KOL/2011[2007-08]Status: DisposedITAT Kolkata05 Nov 2015AY 2007-08

Bench: Shri Mahavir Singh, Jm & Shri Waseem Ahmed, Am]

For Appellant: Shri Akkal Dudhwewala, ACAFor Respondent: Shri P. K. Chakraborty, JCIT, Sr. DR
Section 143(3)Section 14ASection 35(1)(ii)Section 80G

…identical facts the Coordinate Bench in the case of DCIT Vs. Baljit Securities Private Limited in ITA No. 1183/Kol/2012 dated 21.10.2014 has considered this issue by following Special Bench of Mumbai in the case of CIT Vs. Concord Commercial Pvt. Ltd. (2005) 95 ITD 117 (Mum SB), wherein it is held as under: “5. We have heard rival submissions and gone through facts and circumstances of the case. The assessee is engaged in the business of share trading which involves stock and share broking activities, purchase and sale of delivery based shares and purchase & sale of non-delivery based shares i.e., derivative tr…

Indo Shell Cast (P) Ltd., Coimbatore vs. ACIT, Coimbatore

Accordingly. This ground is allowed as indicated above’’

ITA 209/CHNY/2013[2009-10]Status: DisposedITAT Chennai28 Aug 2015AY 2009-10

Bench: Shri Chandra Poojari & Shri V. Durga Raoआयकर अपील सं./ I.T.A. No.209/Mds/2013 ("नधा"रण वष" / Assessment Year : 2009-2010)

For Appellant: Shri. G. Baskar, AdvocateFor Respondent: Dr. B. Nischal, IRS, JCIT

…the share trading profit and loss from derivative transactions should be done before the Explanation to sec.73 is applied. The above view has been taken by Special Bench of this Tribunal, Mumbai Bench, in the case of CIT v. Concord Commercial Pvt. Ltd. (2005) 95 ITD 117 (Mum)(SB). In this case, the Special Bench held that : I.T.A.No.209/Mds/2013. :- 9 -: “Before considering whether the assessee’s case is hit by the deeming provision of Explanation to Sec. 73 of the Act, the aggregate of the business profit / loss has to be worked out based on the non- speculative profits; either it is from share delivery or fr…

Majestic Exports, Tiruppur vs. ACIT, Tiruppur

In the result, the appeals of the assessee are partly allowed

ITA 3072/CHNY/2014[2010-2011]Status: DisposedITAT Chennai24 Jul 2015AY 2010-2011

Bench: Shri Chandra Poojari & Shri V. Durga Raoआयकर अपील सं./ I.T.A. Nos.1336 & 3072/Mds/2014 ("नधा"रण वष" / Assessment Years : 2009-2010 & 2010-2011)

For Appellant: Shri. T. Banusekar, C.A ""For Respondent: Shri. Krishnamurthy, IRS, CIT
Section 43Section 43(5)Section 73Section 8

…the share trading profit and loss from derivative transactions should be done before the Explanation to sec.73 is applied. The above view has been taken by Special Bench of this Tribunal, Mumbai Bench, in the case of CIT v. Concord Commercial Pvt. Ltd. (2005) 95 ITD 117 (Mum)(SB). In this case, the Special Bench held that : “Before considering whether the assessee’s case is hit by the deeming provision of Explanation to Sec. 73 of the Act, the aggregate of the business profit / loss has to be worked out based on the non-speculative profits; either it is from share delivery or from share derivative.” 8. From th…

Majestic Exports, Tiruppur vs. JCIT, Tiruppur

In the result, the appeals of the assessee are partly allowed

ITA 1336/CHNY/2014[2009-2010]Status: DisposedITAT Chennai24 Jul 2015AY 2009-2010

Bench: Shri Chandra Poojari & Shri V. Durga Raoआयकर अपील सं./ I.T.A. Nos.1336 & 3072/Mds/2014 ("नधा"रण वष" / Assessment Years : 2009-2010 & 2010-2011)

For Appellant: Shri. T. Banusekar, C.A ""For Respondent: Shri. Krishnamurthy, IRS, CIT
Section 43Section 43(5)Section 73Section 8

…the share trading profit and loss from derivative transactions should be done before the Explanation to sec.73 is applied. The above view has been taken by Special Bench of this Tribunal, Mumbai Bench, in the case of CIT v. Concord Commercial Pvt. Ltd. (2005) 95 ITD 117 (Mum)(SB). In this case, the Special Bench held that : “Before considering whether the assessee’s case is hit by the deeming provision of Explanation to Sec. 73 of the Act, the aggregate of the business profit / loss has to be worked out based on the non-speculative profits; either it is from share delivery or from share derivative.” 8. From th…