DCIT CENT CIR. 8(1), MUMBAI vs. KUNAL GOVIND KATARIA, MUMBAI

Bench: Shri G. Manjunatha & Shri Ravish Soodkunal Govind Kataria Vs. Dcit,Cc-8(1) 2/B, Cenced Apartments Aaykar Bhawan Nr.Bajaj Park, Ambedkar M.K.Road Road, Bandra(West) Mumbai-400 020 Mumbai-400 050 Pan/Gir No.Aodpk3994G (Appellant) .. (Respondent)

d) & sec 43(5)(e) rendering the losses accrued on NMCE as speculation losses and hence not allowable for set off against profits earned from Commodities derivatives trading on recognized stock exchanges. 12. In the light of above discussion, the loss incurred on NMCE, Ahmadabad amounting to Rs.18,71,18,254/- is disallowed being in the nature of speculation loss

KUNAL GOVIND KATARIA,MUMBAI vs. DCIT CENT CIR. 8(1), MUMBAI

Bench: Shri G. Manjunatha & Shri Ravish Soodkunal Govind Kataria Vs. Dcit,Cc-8(1) 2/B, Cenced Apartments Aaykar Bhawan Nr.Bajaj Park, Ambedkar M.K.Road Road, Bandra(West) Mumbai-400 020 Mumbai-400 050 Pan/Gir No.Aodpk3994G (Appellant) .. (Respondent)

d) & sec 43(5)(e) rendering the losses accrued on NMCE as speculation losses and hence not allowable for set off against profits earned from Commodities derivatives trading on recognized stock exchanges. 12. In the light of above discussion, the loss incurred on NMCE, Ahmadabad amounting to Rs.18,71,18,254/- is disallowed being in the nature of speculation loss

DCIT 4(2)(1), MUMBAI vs. SPS SHARE BROKERS P.LTD, MUMBAI

In the result Revenue fails in this appeal

Bench: Shri Saktijit Dey & Shri Ramit Kochar

disallowing the loss of Rs.93,63,235/-, the AO has considered the relevant provisions of section 43(5) of the Act and section 2(ac) of the Securities Contracts (Regulation) Act. 4. Aggrieved by this finding of the AO the assessee carried the matter before Ld. CIT(A). It was strongly contended that the contracts in foreign currency futures were

ACIT - 4(2)(1), MUMBAI vs. PROGRESSIVE SHARE BROKERS PVT. LTD., MUMBAI

The appeal of the Revenue is dismissed

Bench: Shri Joginder Singh & Shri G. Manjunathaassessment Year: 2009-10 Acit-4(2)(1), M/S Progressive Share Room No.642, 6Th Floor, Brokers Pvt. Ltd. बनाम/ Aayakar Bhavan, B, 1St Floor, Fort Chambers, Vs. M. K. Road, Homi Modi Cross Street, Mumbai-400020 Off. Hamam Street, Fort, Mumbai-400001 (राज"व /Revenue) ("नधा"रती /Assessee) P.A. No.Aaacp6712H

D. Tanna v. Asst. CIT (I. T. A. Nos. 4227 and 5027/ Mum/2010, dated March 14, 2012). In view of the above the loss on purchase and sale of shares independently but to consider it is an integral part of the arbitrage operations. As there in no loss from arbitrage operations, the question of applying section 43(5

DEVESH N SHAH,MUMBAI vs. ITO 7(2)(4), MUMBAI

In the result, the appeal filed by the assessee in ITA N0

Bench: Shri Saktijit Dey & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.778/Mum/2014 ("नधा"रण वष" / Assessment Year : 2009-10) Devesh N. Shah, Income Tax Officer, बनाम/ Rashmi Zaveri & Co., 7(2)(4), V. Chartered Accountants, Mumbai. Arham, Ground Floor, Plot 266, Sion (E), Mumbai – 400022. "थायी लेखा सं./Pan : Abvps5960P (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

disallowance of Rs. 24,907/- u/s 14A of the Act as not being pressed. We order accordingly. 7. The ld. Counsel for the assessee submitted that proviso (d) to clause (5) of Section 43

JM FINANCIAL SERVICES LTD,MUMBAI vs. JCIT (OSD) 4(3), MUMBAI

Accordingly dismissed. However, in view of our findings given above, the appeal of the assessee is treated as partly allowed

Bench: Shri G.S. Pannu & Shri Sanjay Gargassessment Year: 2009-10 M/S. J.M. Financial Services The Joint Commissioner Of Ltd., Income-Tax (Osd)-4(3), (Formerly Jm Financial Room No.635, Services Pvt. Ltd.), Aayakar Bhavan, Vs. 7Th Floor, Cnergy, M.K. Road, Appasaheb Marathe Marg, Mumbai - 400020 Prabhadevi, Mumbai – 400 025 Pan: Aaacj5977A (Appellant) (Respondent) Assessment Year: 2009-10

d) of the act and also the arbitrage / jobbing transactions carried out by the assessee are not speculative transactions. e. In case of ITO Vs Arena textiles & Industries Ltd, ITA No. 1019/Kol/2011 the Hon. Kolkata ITAT has held that, trading of a share which is done by delivery transactions are not hit by sec. 43(5) as speculation. Also, derivatives

KUNAL G. KATARIA,MUMBAI vs. ACIT CENT CIR. 8(1), MUMBAI

Appeal is allowed

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am Kunal G. Kataria The Asst. Commissioner Of 2B, Censed Apartment Income Tax Central Circle Near Bajaj Park, Dr. 8(1), Mumbai Vs. Ambedkar Road Bandra (West), Mumbai-400 050 Appellant .. Respondent Pan No. Aodpk3994G Assessee By : Madhur Aggarwal & Cc Dangi, Ars’ Revenue By : Saurabhkumar Rai, Dr

disallowed the assessee’s claim of speculation loss of ₹ 4,48,73,079/- not allowable from the regular business income, which is income from recognized stock exchanges as specified in section 43(5)(d

INVENTURUS KNOWLEDGE SERVICES P.LTD,NAVI MUMBAI vs. ITO 5(2)(1), MUMBAI

In the result appeal of the assessee company is partly allowed

Bench: Shri Joginder Singh & Shri Ramit Kocharassessment Year: - 2009-10 Inventurus Knowledge Services V. Income Tax Officer Pvt. Ltd. 5(2)(1), C/O. Seren Properties Pvt. Ltd. 525, Aaykar Bhavan, (Sez), Unit No. 204, Build No. 5, M.K. Road, Mindspace Airoli Camp, Plot No. Mumbai - 400 020. 3, Gat No. 95, Kalwa Trans, Thane Creek, Midc Industrial Area, Thane Belapur Road, Airoli, Navi Mumbai – 400 708. Pan/Gir No. Aabck4601P

d) to Section 43(5) of the Act and hence are not speculative transactions as defined under Section 43(5) of the Act. Thus, we hold that loss of Rs.1,09,98,560/- incurred by the company on derivative transactions in foreign currency in the instant appeal is not a speculative loss within the definition as contained in Section 43

DCIT 5(2), MUMBAI vs. LONDON STAR DIAMOND CO. INDIA P.LTD, MUMBAI

In the result, the appeal filed by the Revenue in ITA No

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 1359/Mum/2014 ("नधा"रण वष" / Assessment Year : 2010-11) The Deputy Commissioner Of London Star Diamond बनाम/ Income Tax 5(2) Company (India) Private V. Room No. 571, Aayakar Limited Bhawan, M K Road, Mumbai- 1610/1611 , 400 020 Prasad Chambers, Opera House, Mumbai-400 004 "थायी लेखा सं./Pan : Aaacl0576B .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

d) of section 43(5) of the Act nor it is proved by the assessee that the transactions are in the nature of hedging transactions. Thus, it was held by the AO that the loss of Rs. 85,88,209/- incurred by the assessee is in the nature of speculation loss and not a business loss covered under the provisions

DIWALI CAPITAL & FINANCE PVT. LTD.,MUMBAI vs. DCIT -CC- 2(2), MUMBAI

In the result, the appeals of assessee are partly allowed

Bench: Sri Mahavir Singhaayakr Apila Sam./ Ita No. 3107/Mum/2018 (Inaqa-Arna Baya- / Assessment Year 2013-14) Aayakr Apila Sam./ Ita No. 3108/Mum/2018 (Inaqa-Arna Baya- / Assessment Year 2014-15)

disallowing set off of the Loss from Derivative Transactions carried out on a recognized stock exchanges of Ks. 13,59,638/- by invoking the provision of Explanation to Section 73 of the I tax Act, completely disregarding the amendment to section 43(5) of I Tax Act by the Finance Act 2005 by way of inserting clause (d

DIWALI CAPITAL & FINANCE PVT. LTD.,MUMBAI vs. DCIT- CC-2(2), MUMBAI

In the result, the appeals of assessee are partly allowed

Bench: Sri Mahavir Singhaayakr Apila Sam./ Ita No. 3107/Mum/2018 (Inaqa-Arna Baya- / Assessment Year 2013-14) Aayakr Apila Sam./ Ita No. 3108/Mum/2018 (Inaqa-Arna Baya- / Assessment Year 2014-15)

disallowing set off of the Loss from Derivative Transactions carried out on a recognized stock exchanges of Ks. 13,59,638/- by invoking the provision of Explanation to Section 73 of the I tax Act, completely disregarding the amendment to section 43(5) of I Tax Act by the Finance Act 2005 by way of inserting clause (d

DCIT , CC- 8(1), MUMBAI vs. NIRSHILP SECURITIES PVT. LTD., MUMBAI

In the result, the appeal of the revenue in ITA No

disallowed the losses as claimed by the assessee on the ground that transactions has carried out by the assessee are speculative transactions settled without the delivery in terms of Section 43(5) of the Act. The AO in the assessment order reproduced the relevant provisions of Section 43(5) upto sub-Section (d

ASSTT COMMISSIONER OF INCOME TAX 19(1), MUMBAI vs. KETAN ANIL SHAH, MUMBAI

In the result, appeal filed by the Revenue is dismissed

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail () Assessment Year: 2014-15 Asst. Commissioner Of Ketan Anil Shah Income-Tax 19(1), Mumbai, 44/B Rajul Apartment Vs. Matru Mandir, Room No.203, J Mehta Marg, Napean Sea Grant Road, Mumbai-400 007 Road, Mumbai-400 006 Pan No. Aaips 9400 J Appellant Respondent : Revenue By Smt. Madhumalti Ghosh, Cit-Dr Assessee By : Shri Anish Shah, Ca & Shri Haridas Bhat Date Of Hearing : 01/12/2022 Date Of Pronouncement : 19/01/2023

disallowed the losses as claimed by the assessee on the ground transactions has carried out by the assessee are speculative transactions settled wi the assessee are speculative transactions settled with delivery in terms of th delivery in terms of Section 43(5) of the Act. The AO in the assessment < reproduced the relevant provisions of Section 43(5

ZEE ENTERTAINMENT ENTERPRISES LIMITED,MUMBAI vs. ADDL. COMM OF INCOME TAX RANGE-11 (1), MUMBAI

In the result, appeal of the assessee is partly allowed

Bench: Shri G.S.Pannu & Shri Ravish Soodzee Entertainment Enterprises Ltd., 135, Continental Building, Dr.A.B.Road, Worli, Mumbai 400 020 Pan:Aaacz 0243R ...... Appellant Vs. The Addl. Commissioner Of Income Tax, Range -11(1), 4Th Floor, Room No.434, Aaykar Bhavan,M.K.Road, Mumbai – 400 020 .... Respondent

43 (5) of the Act. The reasons given by him for doing so are wrong, contrary to the facts of the case and against the provisions of law. (ii) The Ld. CIT (A) ought to have allowed the crystallized & paid interest rate swap transaction loss in the normal course of business being expenditure of revenue in nature incurred

ELARA CAPITAL (INDIA) PRIVATE LIMITED,MUMBAI vs. ACIT- CIRCLE 6(2)(2), MUMBAI

In the result, the appeal of the assessee is allowed

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 2017-18 Elara Capital (India) Pvt. Ltd., The Acit-Circle 6(2)(2), Tower 3, 21St Floor, One Room No. 506, 5Th Floor, Vs. International Center, Senapati Aayakar Bhavan, Maharshi Bapat Marg, Elphinstone Karve Road, Mumbai- Road (West), Mumbai-400013. 400020. Pan No. Aabce 6487 B Appellant Respondent

d made disallowance u/s 14A of contention of the assessee an contention of the assessee and made disallowance u the Act by applying Rule 8D. On appeal, the Ld On appeal, the Ld. CIT(A) the Act by applying Rule 8D deleted the disallowance made by the AO. Aggrieved by the deleted the disallowance made by the AO Aggrieved

DCIT, CIR - 4(2)(1), MUMBAI vs. M/S.OHM STOCK BROKER P. LTD., MUMBAI

In the result, appeal filed by the Revenue is dismissed

Bench: Shri Aby T. Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Bledcit – Circle – 4(2)(1) V. M/S. Ohm Stock Brokers Pvt. Ltd., Room No. 642, 6Th Floor 301-A, Poonam Chambers Aayakar Bhavan, M.K. Road B-Wing, Dr. A.B. Road Mumbai - 400020 Worli, Mumbai -400018 Pan: Aaaco3526E (Appellant) (Respondent) Assessee By : None Department By : Shri M.P. Ahuja

d) to section 43(5) and therefore could not be treated as speculative loss and as such assessee was eligible to set off impugned loss from future and option transactions against other business income earned by assessee during year. 11. In view of the above submissions, the appellant submits that the loss incurred by the Appellant be treated as normal

KEDIA SHARES & STOCKS BROKERS LTD,MUMBAI vs. JT CIT (OSD) 4(3), MUMBAI

In the result, the appeal is partly allowed

Bench: Shri Mahavir Singh () & Shri N.K. Pradhan () Assessment Year: 2009-10

d) to other leg of transaction in derivative segment which is ex-facie “arbitrary”, unjust and contrary to law and judicial pronouncements. 1.6 The learned CIT(A) erred in law in not making ‘harmonious construction’ between provisos to Section 43(5) and Explanation to Section 73 for computing speculation income under Explanation 2 to Section 28. He ought to have

M/S. VISION MILLENIUM EXPORTS P. LTD,MUMBAI vs. DCIT, CENTRAL CIRCLE- 7(2), MUMBAI

In the result, the appeal

Bench: BEFORESHRI SANDEEP GOSAIN (Judicial Member), SHRI PRABHASH SHANKAR (Accountant Member)

disallowed as business loss as the same was a loss from speculation business. The reply of the assessee is already reproduced in earlier para and assessee is already reproduced in earlier para and the same is found to be devoid of any the same is found to be devoid of any merit.Section 43(5) of the Act reads as under

LAXMI DIAMOND P.LTD,MUMBAI vs. ADDL CIT 5(1), MUMBAI

In the result, both the appeals filed by the assessee are partly

Bench: Shri Mahavir Singh () & Shri G Manjunatha ()

disallowed loss incurred on forward contracts on the ground that these are in the nature of speculative transactions as defined in section 43(5). 10. The provisions of section 43(5) deals with speculative transactions. As per section 43(5), speculative transaction means a transaction in which a contract for the purchase / sale of any commodity including stock and shares