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“speculative transaction”

Losses & Set-offSection 43(5)Section 43(5)255 judgments

The decision most relied on for speculative transaction is CIT v. Badridas Gauridu (P) Ltd. (261 ITR 256), cited in 114 judgments on BharatTax.

Leading authorities on speculative transaction

CIT v. Badridas Gauridu (P) Ltd.
261 ITR 256 · 2003 · High Court
114
citing judgments

Losses incurred from foreign exchange forward contracts or derivatives, entered into to hedge currency fluctuations in the course of regular business like exports, are treated as business losses and not as speculative transactions under Section 43(5). Such contracts, when incidental to business and cover exchange rate risks, constitute a business activity.

CIT v. Punjab Stainless Steel Industries
364 ITR 144 · 2014 · Supreme Court
59
citing judgments

The Supreme Court holds that ICAI Guidance Notes and accounting methods prescribed by the Institute of Chartered Accountants of India (ICAI) can be relied upon for computing "turnover," especially for tax audit purposes under Section 44AB and for transactions involving shares and derivatives.

CIT v. Soorajmull Nagarmull
129 ITR 169 · 1981 · High Court
55
citing judgments

Losses from foreign exchange forward contracts, when incidental to an assessee's regular business and undertaken to safeguard business interests, are treated as business losses and not speculative losses under section 43(5).

CIT v. Concord Commercial Pvt. Ltd.
95 ITD 117 · 2005 · ITAT
34
citing judgments

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.

CIT v. Darshan Securities (P) Ltd.
341 ITR 556 · 2012 · High Court
27
citing judgments

A company involved in the purchase and sale of shares is deemed to be carrying on a speculative business to the extent of such transactions, unless it falls under an exception to Section 73 of the Income Tax Act.

Pankaj Oil Mills v. CIT
115 ITR 824 · 1978 · High Court
26
citing judgments

Hedging contracts related to raw materials for manufacturers are excluded from speculative transactions under Section 43(5) of the Income Tax Act, even if they involve both sales and purchases and are entered into at different times from the delivery of goods.

CIT v. Trishul Investments Ltd.
305 ITR 434 · 2008 · High Court
26
citing judgments

Interest paid on loans borrowed for the purpose of investment in shares is allowed as part of the cost of acquisition eligible for deduction while computing capital gains under Section 48. The intention of the assessee at the time of acquisition of shares determines the nature of the gain.

Quality Engineering & Software Technologies (P.) Ltd. v. DCIT
52 Taxmann.com 515 · 2014 · ITAT
26
citing judgments

A forward contract entered into to protect against foreign currency fluctuations on consideration receivable for exports is not a speculative transaction, and provisions for losses on such derivative contracts are allowable expenditures.

Judgments citing speculative transaction

Sanjeev Kumar Gupta, Delhi vs. ITO, Ward-56(4), New Delhi

In the result, the appeal of the assessee is allowed

ITA 48/DEL/2023[2016-17]Status: DisposedITAT Delhi24 Aug 2023AY 2016-17

Bench: Shri Chandra Mohan Garg & Shri Pradip Kumar Kedia

For Appellant: NoneFor Respondent: Shri Anuj Garg, Sr.DR
Section 143(3)Section 271BSection 44A

issued by the ICAI for the purposes of tax audit under Section 44AB of the Act, the turnover in the case of derivative and speculative transactions (which are non delivery based transactions), only the resultant difference arising to the assessee from such transaction has to be taken for the purposes ... only, as per the material placed before the Revenue Authorities in the course of the assessment proceedings. Such turnover arising from derivative / speculative transactions are far lower than the threshold limit prescribed under Section 44AB of the Act. Consequently, a reasonable cause has been shown by the assessee

Anidhi Impex P.Ltd, Mumbai vs. DCIT 4(1), Mumbai

In the result, the appeal of the assessee is partly allowed

ITA 3998/MUM/2013[2009-10]Status: DisposedITAT Mumbai14 Aug 2023AY 2009-10

Bench: Shri Vikas Awasthy & Shri Amarjit Singhanidhi Impex Pvt. Ltd. Vs. Dy. Comm. Of It-4(1) C/O Asj & Company Llp, Room No. 638, Aaykar 201, Rajshila, 597, Jss Bhavan, Churchgate, Road, Near Marine Lines, Mumbai – 400020 Mumbai – 400 002 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaeca7748J Appellant .. Respondent [ Appellant By : Amit Porwal Respondent By : Manoj Kumar Sinha Date Of Hearing 18.05.2023 Date Of Pronouncement 14.08.2023 आदेश / O R D E R Per Amarjit Singh (Am): This Appeal Filed By The Assesse Is Directed Against The Order Passed By The Ld. Cit(A)-8, Mumbai, Dated 21.03.2013 For A.Y. 2009- 10. The Assessee Has Raised The Following Concise Ground Of Appeal Vide Letter Dated 26.03.2019: “1. On The Facts & Circumstances Of The Case & In Law Cit (A) Erred In Confirming The Action Of A.O. Of Treating The Loss Of Rs.1,84,26,264/- Incurred On Mcx Transactions As Speculative Loss U/S 43 (5) Of The Income Tax Act. 1961. 2. The Cit (A) Erred In Not Adjudicating The Ground Relating To Disallowance Of Expenses Rs. 7,851/; & Rs.1,62,819/- Incurred On Security Transaction Tax & Other Charges Of Mcx Respectively, Considered By The A.O. As Speculative. 3. Cit (A) Erred In Not Adjudicating The Ground Relating To The Disallowance Of Expenses Of Rs. 10,00,000/- By The A.O. On Estimation & Ad Hoc Basis Stating As Related To The Mcx Transactions & Hence Speculative In Nature, Without Even Confronting The Appellant Of This Proposed Action By Issuing Show Cause.

For Appellant: Amit PorwalFor Respondent: Manoj Kumar Sinha
Section 143(2)Section 43Section 43(5)Section 73

section (5) of Sec. 43 of the Act Income Tax Act which says that transaction settled otherwise then by actual delivery is of speculative transactions. On query, the assessee explained that it has traded more or less in same commodities as traded by it by way of physical delivery ... assessee is exposed to more risk. Therefore, the transaction carried out by the assessee in the forward market were not hedging transactions but speculative transactions 3. As per the submission filed on 17.11.2011, the assessee tried to justify their MCX position with the purchase order placed / sale contract of suppliers

ACIT Circle-54(1), New Delhi vs. National Agricultural Cooperative Marketing Federation of India, New Delhi

ITA 3555/DEL/2019[2014-15]Status: DisposedITAT Delhi09 Aug 2023AY 2014-15

Bench: Dr. B. R. R. Kumar & Shri Yogesh Kumar U.S.

For Appellant: Sh. Herin Mehta, CA, ShFor Respondent: Ms. Sarita Kumari, CIT DR
Section 10Section 14ASection 2Section 37(1)Section 40Section 43(5)(d)Section 72Section 80

losses through future price fluctuations in respect of actual trading of the commodities by the NAFED and, therefore, the 28 said transaction is not speculative transactions and directed the Assessing Officer to delete the impugned addition. National Agricultural Cooperative Marketing Vs. ACIT 60. We have given thoughtful consideration

ACIT Circle-54(1), New Delhi vs. National Agricultural Cooperative Marketing Federation of India, New Delhi

ITA 3554/DEL/2019[2012-13]Status: DisposedITAT Delhi09 Aug 2023AY 2012-13

Bench: Dr. B. R. R. Kumar & Shri Yogesh Kumar U.S.

For Appellant: Sh. Herin Mehta, CA, ShFor Respondent: Ms. Sarita Kumari, CIT DR
Section 10Section 14ASection 2Section 37(1)Section 40Section 43(5)(d)Section 72Section 80

losses through future price fluctuations in respect of actual trading of the commodities by the NAFED and, therefore, the 28 said transaction is not speculative transactions and directed the Assessing Officer to delete the impugned addition. National Agricultural Cooperative Marketing Vs. ACIT 60. We have given thoughtful consideration

ACIT Circle-54(1), New Delhi vs. National Agricultural Cooperative Marketing Federation of India, New Delhi

ITA 3553/DEL/2019[2011-12]Status: DisposedITAT Delhi09 Aug 2023AY 2011-12

Bench: Dr. B. R. R. Kumar & Shri Yogesh Kumar U.S.

For Appellant: Sh. Herin Mehta, CA, ShFor Respondent: Ms. Sarita Kumari, CIT DR
Section 10Section 14ASection 2Section 37(1)Section 40Section 43(5)(d)Section 72Section 80

losses through future price fluctuations in respect of actual trading of the commodities by the NAFED and, therefore, the 28 said transaction is not speculative transactions and directed the Assessing Officer to delete the impugned addition. National Agricultural Cooperative Marketing Vs. ACIT 60. We have given thoughtful consideration

National Agricultural Cooperative Marketing Federation of India, New Delhi vs. ACIT Circle-32(1), New Delhi

ITA 3000/DEL/2019[2011-12]Status: DisposedITAT Delhi09 Aug 2023AY 2011-12

Bench: Dr. B. R. R. Kumar & Shri Yogesh Kumar U.S.

For Appellant: Sh. Herin Mehta, CA, ShFor Respondent: Ms. Sarita Kumari, CIT DR
Section 10Section 14ASection 2Section 37(1)Section 40Section 43(5)(d)Section 72Section 80

losses through future price fluctuations in respect of actual trading of the commodities by the NAFED and, therefore, the 28 said transaction is not speculative transactions and directed the Assessing Officer to delete the impugned addition. National Agricultural Cooperative Marketing Vs. ACIT 60. We have given thoughtful consideration

Mamta Mehta, Mumbai vs. Income Tax Officer Ward 31(2)(3), Mumbai

In the result, appeal of assessee is allowed for statistical purpose

ITA 1534/MUM/2022[2016-17]Status: DisposedITAT Mumbai31 Jul 2023AY 2016-17

Bench: Shri Vikas Awasthy& Shri Amarjit Singh आअसं.1442 /मुं/2021 ("न.व. 2011-12) आअसं.1534 /मुं/2022 ("न.व. 2016-17) Mamta Mehta, B-3, Bldg No.3, Saibaba Enclave, Behind Citi Centre, Goregaon West Mumbai 400 062. Pan: Afxpm-6021-P ...... अपीलाथ"/Appellant बनाम Vs. Income Tax Officer, Ward 31(2)(3), Kautalya Bhavan, C-41 To C-43, G-Block, Bkc, Bandra(E) Mumbai – 400 051 ..... ""तवाद"/Respondent अपीलाथ" "वारा/ Appellant By : Shri Bhupendra Shah ""तवाद" "वारा/Respondent By : Shri Prakash Choughule सुनवाई क" "त"थ/ Date Of Hearing : 14/07/2023 घोषणा क" "त"थ/ Date Of Pronouncement : 31/07/2023 आदेश/Order Per Vikas Awasthy, Jm:

For Appellant: Shri Bhupendra ShahFor Respondent: Shri Prakash Choughule
Section 10(38)Section 44A

turnover disallowing losses in Future and Options segment of equities. The Assessing Officer has treated loss in F& O segment as speculative loss. The speculative transaction has been defined in section 43(5) of the Act. In a proviso to said sub-section certain exclusions have been provided, where ... transactions are not deemed to be speculative transaction. Clause (d) has been inserted in the exclusion proviso by the Finance Act 2005 w.e.f. 01/04/2006. As per clause(d), transaction in respect of trading in derivatives referred to in Securities Contract Regulation Act, 1956, section 2(ac) the trading carried

Mamta Mehta, Mumbai vs. ITO, Mumbai

In the result, appeal of assessee is allowed for statistical purpose

ITA 1442/MUM/2021[2011-12]Status: DisposedITAT Mumbai31 Jul 2023AY 2011-12

Bench: Shri Vikas Awasthy& Shri Amarjit Singh आअसं.1442 /मुं/2021 ("न.व. 2011-12) आअसं.1534 /मुं/2022 ("न.व. 2016-17) Mamta Mehta, B-3, Bldg No.3, Saibaba Enclave, Behind Citi Centre, Goregaon West Mumbai 400 062. Pan: Afxpm-6021-P ...... अपीलाथ"/Appellant बनाम Vs. Income Tax Officer, Ward 31(2)(3), Kautalya Bhavan, C-41 To C-43, G-Block, Bkc, Bandra(E) Mumbai – 400 051 ..... ""तवाद"/Respondent अपीलाथ" "वारा/ Appellant By : Shri Bhupendra Shah ""तवाद" "वारा/Respondent By : Shri Prakash Choughule सुनवाई क" "त"थ/ Date Of Hearing : 14/07/2023 घोषणा क" "त"थ/ Date Of Pronouncement : 31/07/2023 आदेश/Order Per Vikas Awasthy, Jm:

For Appellant: Shri Bhupendra ShahFor Respondent: Shri Prakash Choughule
Section 10(38)Section 44A

turnover disallowing losses in Future and Options segment of equities. The Assessing Officer has treated loss in F& O segment as speculative loss. The speculative transaction has been defined in section 43(5) of the Act. In a proviso to said sub-section certain exclusions have been provided, where ... transactions are not deemed to be speculative transaction. Clause (d) has been inserted in the exclusion proviso by the Finance Act 2005 w.e.f. 01/04/2006. As per clause(d), transaction in respect of trading in derivatives referred to in Securities Contract Regulation Act, 1956, section 2(ac) the trading carried

DCIT Central Circle Ajmer, Ajmer vs. Yashwant Kumar Sharma, Ajmer

In the result, the appeal of the revenue is dismissed and the cross

ITA 210/JPR/2023[2020-21]Status: DisposedITAT Jaipur19 Jul 2023AY 2020-21

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA No. 210/JP/2023 fu/kZkj.k o"kZ@Assessment Years : 2020-21 DCIT, Central Circle, Ajmer cuke Vs. Yashwant Kumar Sharma F-108, Industrial Area, Makhupura Parbatpura, Ajmer LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: ASWPS 3791 E vihykFkhZ@Appellant izR;FkhZ@Respondent vk;dj vihy la-@C.O. No. 04/JP/2023 (Arising out of ITA Nos. 210/JP/2023) fu/kZkj.k o"kZ@Assessment Years : 2020-21 Yashwant Kumar Sharma

For Appellant: Sh. C. M. Agarwal (CA)For Respondent: Sh. James Kurian (CIT) &
Section 139(1)Section 271ASection 274

very important to adjudicate this issue. Therefore, the question is when the search took place, the assessee’s transactions (in this case, the speculative transaction) has been found to be recorded in the “other documents” which is (retrieved from the assessee’s accountant’s drawer) and based on that

Manoj Kumar Agrawal, Raipur vs. Income Tax Officer, Ward 4(4), Raipur

In the result, all the three appeals of the assessee are allowed for statistical purposes

ITA 69/RPR/2020[2015-16]Status: DisposedITAT Raipur07 Jul 2023AY 2015-16

Bench: Shri Ravish Sood, Jm & Shri Arun Khodpia, Am आयकर अपील सं./Ita Nos.67-69/Rpr/2020 (Assessment Year: 2015-2016) Manoj Kumar Agrawal Vs Ito, Ward-4(4), Raipur Shop No.1 & 4, 2Nd Floor, Sahara India Life Insurance, Millenium Plaza,Raipur-4920014 Pan No. :Aclpa 8619 C (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) धििााररती की ओर से /Assessee By : Shri Rakesh Kumar Chirania, Ca राजस्ि की ओर से /Revenue By : Shri Choudhary N.C.Roy, Sr. Dr सुििाई की तारीख / Date Of Hearing : 05/07/2023 घोषणा की तारीख/Date Of Pronouncement : 07/07/2023 आदेश / O R D E R Per Arun Khodpia, Am : These Three Appeals Have Been Filed By The Assessee Against The Order Passed By The Cit(A)-Ii, Raipur, Dated 29.01.2020 For The Assessment Year 2015-2016. 2. The Registry Has Pointed Out The Delay Of 66 Days In Filing The All The Three Appeals By The Assessee. In This Regard, Ld. Ar Of The Assessee Submitted That The Entire Delay Was Covered Due To Covid Period, Wherein The Limitation Was Extended By The Hon’Ble Supreme Court In The Suo Motu Writ Petition (Civil) No(S).3/2020, Dated 23.03.2020, Therefore, The Delay May Be Considered As No Delay On The Part Of The Assessee & The Appeals May Be Admitted For Hearing. Ld. Dr Also Did Not Object To The Contention Raised By The Assessee. Accordingly, We Condone The Delay Of 66 Days In Filing The Present Appeals By The Assessee & The Appeals Are Heard Finally.

For Appellant: Shri Rakesh Kumar Chirania, CAFor Respondent: Shri Choudhary N.C.Roy, Sr. DR
Section 271ASection 44A

involved in intraday trading wherein he had not taken actual delivery of the shares, and such transactions squarely fall within the ambit of speculative transaction as per the Guidance Note on Tax Audit u/s.44AB of the I.T.Act, 1961. The Guidance Note was also accepted by the AO, which reads ... under :- A speculative transaction means a transaction in which a contract for the purchase or sale of any commodity, including stocks and shares, is periodically or ultimately settled otherwise than by the actual delivery or transfer of the commodity or scrips. Thus, in a speculative transaction, the contract for sale

Manoj Kumar Agrawal, Raipur vs. Income Tax Officer, Ward 4(4), Raipur

In the result, all the three appeals of the assessee are allowed for statistical purposes

ITA 68/RPR/2020[2015-16]Status: DisposedITAT Raipur07 Jul 2023AY 2015-16

Bench: Shri Ravish Sood, Jm & Shri Arun Khodpia, Am आयकर अपील सं./Ita Nos.67-69/Rpr/2020 (Assessment Year: 2015-2016) Manoj Kumar Agrawal Vs Ito, Ward-4(4), Raipur Shop No.1 & 4, 2Nd Floor, Sahara India Life Insurance, Millenium Plaza,Raipur-4920014 Pan No. :Aclpa 8619 C (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) धििााररती की ओर से /Assessee By : Shri Rakesh Kumar Chirania, Ca राजस्ि की ओर से /Revenue By : Shri Choudhary N.C.Roy, Sr. Dr सुििाई की तारीख / Date Of Hearing : 05/07/2023 घोषणा की तारीख/Date Of Pronouncement : 07/07/2023 आदेश / O R D E R Per Arun Khodpia, Am : These Three Appeals Have Been Filed By The Assessee Against The Order Passed By The Cit(A)-Ii, Raipur, Dated 29.01.2020 For The Assessment Year 2015-2016. 2. The Registry Has Pointed Out The Delay Of 66 Days In Filing The All The Three Appeals By The Assessee. In This Regard, Ld. Ar Of The Assessee Submitted That The Entire Delay Was Covered Due To Covid Period, Wherein The Limitation Was Extended By The Hon’Ble Supreme Court In The Suo Motu Writ Petition (Civil) No(S).3/2020, Dated 23.03.2020, Therefore, The Delay May Be Considered As No Delay On The Part Of The Assessee & The Appeals May Be Admitted For Hearing. Ld. Dr Also Did Not Object To The Contention Raised By The Assessee. Accordingly, We Condone The Delay Of 66 Days In Filing The Present Appeals By The Assessee & The Appeals Are Heard Finally.

For Appellant: Shri Rakesh Kumar Chirania, CAFor Respondent: Shri Choudhary N.C.Roy, Sr. DR
Section 271ASection 44A

involved in intraday trading wherein he had not taken actual delivery of the shares, and such transactions squarely fall within the ambit of speculative transaction as per the Guidance Note on Tax Audit u/s.44AB of the I.T.Act, 1961. The Guidance Note was also accepted by the AO, which reads ... under :- A speculative transaction means a transaction in which a contract for the purchase or sale of any commodity, including stocks and shares, is periodically or ultimately settled otherwise than by the actual delivery or transfer of the commodity or scrips. Thus, in a speculative transaction, the contract for sale

Manoj Kumar Agrawal, Raipur vs. Income Tax Officer, Ward 4(4), Raipur

In the result, all the three appeals of the assessee are allowed for statistical purposes

ITA 67/RPR/2020[2015-16]Status: DisposedITAT Raipur07 Jul 2023AY 2015-16

Bench: Shri Ravish Sood, Jm & Shri Arun Khodpia, Am आयकर अपील सं./Ita Nos.67-69/Rpr/2020 (Assessment Year: 2015-2016) Manoj Kumar Agrawal Vs Ito, Ward-4(4), Raipur Shop No.1 & 4, 2Nd Floor, Sahara India Life Insurance, Millenium Plaza,Raipur-4920014 Pan No. :Aclpa 8619 C (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) धििााररती की ओर से /Assessee By : Shri Rakesh Kumar Chirania, Ca राजस्ि की ओर से /Revenue By : Shri Choudhary N.C.Roy, Sr. Dr सुििाई की तारीख / Date Of Hearing : 05/07/2023 घोषणा की तारीख/Date Of Pronouncement : 07/07/2023 आदेश / O R D E R Per Arun Khodpia, Am : These Three Appeals Have Been Filed By The Assessee Against The Order Passed By The Cit(A)-Ii, Raipur, Dated 29.01.2020 For The Assessment Year 2015-2016. 2. The Registry Has Pointed Out The Delay Of 66 Days In Filing The All The Three Appeals By The Assessee. In This Regard, Ld. Ar Of The Assessee Submitted That The Entire Delay Was Covered Due To Covid Period, Wherein The Limitation Was Extended By The Hon’Ble Supreme Court In The Suo Motu Writ Petition (Civil) No(S).3/2020, Dated 23.03.2020, Therefore, The Delay May Be Considered As No Delay On The Part Of The Assessee & The Appeals May Be Admitted For Hearing. Ld. Dr Also Did Not Object To The Contention Raised By The Assessee. Accordingly, We Condone The Delay Of 66 Days In Filing The Present Appeals By The Assessee & The Appeals Are Heard Finally.

For Appellant: Shri Rakesh Kumar Chirania, CAFor Respondent: Shri Choudhary N.C.Roy, Sr. DR
Section 271ASection 44A

involved in intraday trading wherein he had not taken actual delivery of the shares, and such transactions squarely fall within the ambit of speculative transaction as per the Guidance Note on Tax Audit u/s.44AB of the I.T.Act, 1961. The Guidance Note was also accepted by the AO, which reads ... under :- A speculative transaction means a transaction in which a contract for the purchase or sale of any commodity, including stocks and shares, is periodically or ultimately settled otherwise than by the actual delivery or transfer of the commodity or scrips. Thus, in a speculative transaction, the contract for sale

Varun Batra, Mumbai vs. CIT(Appeals), NFAC, Delhi

In the result, appeal of the assessee is allowed for statistical purposes

ITA 3175/MUM/2022[2013-14]Status: DisposedITAT Mumbai28 Jun 2023AY 2013-14

Bench: Shri Aby T. Varkey, Jm & Ms. Padmavathy S, Am आयकर अपील सं/ I.T.A. No.3175/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2013-14) Varun Batra बिधम/ National Faceless Appeal Flat 5, 5Th Floor, La Mer, Centre (Nfac), Delhi. Vs. Mistry Park, Kadeshwari Temple Road, Bandra West, Mumbai-400040. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aezpb9157L (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: None Revenue By: Ms. Vranda U Matkari (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 15/06/2023 घोषणा की तारीख /Date Of Pronouncement: 28/06/2023 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)/Nfac, Delhi Dated 23.08.2022 For Assessment Year 2013-14. 2. Though, The Matter Was Listed For Seven (7) Times, No One Represented/Appeared On Behalf Of The Assessee. However, We Find That Written Submission Has Been Filed On Behalf Of The Assessee. Therefore, After Hearing The Ld. Dr & After Perusal Of The Written Submission, We Proceed To Dispose Off This Appeal. The Main Grievance Of The Assessee Is Against The Action Of The Ld. Cit(A) Confirming The Action Of The Ao By Which The Assessee’S Claim Of Loss Of Rs.15,23,598/- To Be Set-Off Against The Income From Other Heads (Apart From Salary) Was Disallowed By The Ao.

For Appellant: NoneFor Respondent: Ms. Vranda U Matkari (Sr. AR)
Section 2Section 43(5)

transactions are in the nature of forward trading, the AO asked assesse to explain as to why these transactions should not be treated as speculative transaction and the assessee’s reply has been reproduced by the AO at para no. 5 of his order. And thereafter, the AO has held ... Varun Batra provisions of the section 43(5) of Income Tax Act, 1961 which have been reproduced as under: - (5) “speculative transaction” means a transaction in which a contract for the purpose or sale of any commodity, including stocks and shares, is periodically or ultimately settled otherwise than

Keval H Seth, Mumbai vs. ITO Ward 16(2)(1), Mumbai

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

ITA 418/MUM/2020[2007-08]Status: DisposedITAT Mumbai09 Jun 2023AY 2007-08

Bench: Shri Pavan Kumar, Hon’Blekeval H. Seth V. Ito, Ward 16(2)(1), 17-D Malabar Apartment Matrumandir, Nepeansea Road Tardeo Road, Mumbai- 400036 Mumbai- 400007 Pan: Afbps4180H

Section 132Section 143(1)Section 147Section 148Section 151Section 250

shares of M/s Talent Infoways Ltd., had therein submitted that the same comprised of profit of Rs.15,974/ which was generated by her from speculative transactions carried through MSPL, while for the balance amount of Rs.168/- was paid in cash, for which receipt was received from the broker. The assessee

M/S G.G. Continental Traders Private Limited, Bathinda vs. Deputy Commissioner of Income Tax Circle-1, Bathinda

In the result, Ground No. 2 of the appeal of the assessee is allowed

ITA 99/ASR/2022[2017-18]Status: DisposedITAT Amritsar08 Jun 2023AY 2017-18

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 43(5)

order of the CIT(A),Bhatinda dated 30.05.2019 in the case of the appellant for AY 2013- 14. 6.4. Identical issue of speculative transaction u/s 43(5) for high sea sales was examined by the CIT(A),Bhatinda in the case of the appellant for AY 2013-14. The relevant ... case of the appellant for AY 2013-14, I also held that the high sea purchase & sales transactions of the CPO are speculative transactions within the meaning of section 43(5) of the Act and therefore, he loss on account of such speculative transactions can’t be set-off against

M/S G.G Continental Traders Private Limited, Bathinda vs. Deputy Commissioner of Income Tax Circle-1, Bathinda

In the result, Ground No. 2 of the appeal of the assessee is allowed

ITA 97/ASR/2022[2015-16]Status: DisposedITAT Amritsar08 Jun 2023AY 2015-16

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 43(5)

order of the CIT(A),Bhatinda dated 30.05.2019 in the case of the appellant for AY 2013- 14. 6.4. Identical issue of speculative transaction u/s 43(5) for high sea sales was examined by the CIT(A),Bhatinda in the case of the appellant for AY 2013-14. The relevant ... case of the appellant for AY 2013-14, I also held that the high sea purchase & sales transactions of the CPO are speculative transactions within the meaning of section 43(5) of the Act and therefore, he loss on account of such speculative transactions can’t be set-off against

Shri Gagandeep Garg. Prop, Bathinda vs. Principal Commissioner of Income Tax -1, Amritsar

In the result, the appeal of the assessee is allowed

ITA 39/ASR/2021[2015-16]Status: DisposedITAT Amritsar07 Jun 2023AY 2015-16

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 263

setting aside original order inspite the fact that he has not controverted the submissions of the assessee that high sea sales is not speculative transaction and therefore there can be no disallowance of loss arising therefrom against the non speculative business income. 3. The Principal Commissioner of Income ... delivery or handling of actual delivery. The gross loss of such trading has been 3 I.T.A. No. 39/Asr/2021 Gagandeep Garg v. ITO shown from speculative transactions at Rs. 1,48,17,503/- out of total sales of Rs. 59,33,12,560/- against the purchase of Crude

M/S. Shaz Enterprise, Rajkot vs. The Income Tax Officer, Ward-2(1)(1), Rajkot

In the result, the appeal filed by the Assessee is hereby allowed for statistical purposes

ITA 394/RJT/2017[2014-15]Status: DisposedITAT Rajkot26 May 2023AY 2014-15

Bench: Smt. Annapurna Gupta (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)

Section 143(3)Section 41(1)

appeal before the Ld. Commissioner of Income Tax (Appeals), Rajkot. The Ld. CIT(A) confirmed the addition, however held that it is a speculative transaction, which cannot be set off against the business income of the assessee and dismissed the assessee’s appeal observing as follows: “6. Having considered facts ... have been termed a trading transaction. In absence of delivery of any actual goods involved in the whole transaction, the same are nothing but speculative transactions. Therefore, the claim of partial write off of receivables from a speculative trading in anticipation of failure on part of NSEL to pay back

Measage Gurdas Agro Private Limited, Bathinda vs. Deputy Commissioner of Income Tax Circle- 1, Bathinda

In the result, all the appeals of the revenue are dismissed and all the appeals

ITA 517/ASR/2019[2016-17]Status: DisposedITAT Amritsar24 May 2023AY 2016-17

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 143(3)Section 250(6)

Income of Other Sources’ by the ld. AO. In other issue, the revenue has taken the “high sea sale” of imported goods as speculative transaction U/s 43(5) & the loss is treated as speculative loss which is barred to adjust with the interest. The assessee has grievance that the entire ... assessee the ld. CIT(A) upheld the observation of the ld. AO related to “high sea sale” of imported goods & considered as speculative transaction u/s 43(5). But in the addition of interest, the ld. CIT(A) has changed view & treated as business income. Accordingly, ld. CIT(A) has rejected

Shri Gurdas Garg, Bathinda vs. Deputy Commissioner of Income Tax Circle- 1, Bathinda

In the result, all the appeals of the revenue are dismissed and all the appeals

ITA 516/ASR/2019[2016-17]Status: DisposedITAT Amritsar24 May 2023AY 2016-17

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 143(3)Section 250(6)

Income of Other Sources’ by the ld. AO. In other issue, the revenue has taken the “high sea sale” of imported goods as speculative transaction U/s 43(5) & the loss is treated as speculative loss which is barred to adjust with the interest. The assessee has grievance that the entire ... assessee the ld. CIT(A) upheld the observation of the ld. AO related to “high sea sale” of imported goods & considered as speculative transaction u/s 43(5). But in the addition of interest, the ld. CIT(A) has changed view & treated as business income. Accordingly, ld. CIT(A) has rejected