Pre-amendment reassessment limitation bars late notices under the preserved regime, invalidating consequential reassessment for affected earlier asses...
Cash-sales explanations for bank deposits require documentary reconciliation; reassessment notice survived where effective response time was available...
Functional comparability in transfer pricing prevents ad hoc arm's length adjustments where functions, assets, risks and reliable comparables are unes...
Contingency expenses, exempt-income disallowance, and royalty benchmarking: unsupported adjustments were deleted under consistent accounting and trans...
ITAT analyzed derivative trading transactions involving gold, focusing on the interpretation of speculative transactions under section 43(5). The tribunal held that hedging transactions by traders are excluded from speculative transaction definition, contrary to the AO's initial assessment. The court affirmed that genuine hedging transactions, including purchase hedges, are not speculative when they do not exceed total stock of merchandise. The tribunal rejected revenue's arguments, emphasizing that proviso (a) and (e) have distinct scopes. CIT(A)'s order deleting disallowance of derivative transaction losses was upheld, finding no infirmity in the interpretation. The decision effectively expanded the exclusionary clause to include traders' hedging transactions, providing clarity on the legal treatment of derivative trading.
ITAT analyzed derivative trading transactions involving gold, focusing on the interpretation of speculative transactions under section 43(5). The tribunal held that hedging transactions by traders are excluded from speculative transaction definition, contrary to the AO's initial assessment. The court affirmed that genuine hedging transactions, including purchase hedges, are not speculative when they do not exceed total stock of merchandise. The tribunal rejected revenue's arguments, emphasizing that proviso (a) and (e) have distinct scopes. CIT(A)'s order deleting disallowance of derivative transaction losses was upheld, finding no infirmity in the interpretation. The decision effectively expanded the exclusionary clause to include traders' hedging transactions, providing clarity on the legal treatment of derivative trading.
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TaxTMI 
TaxTMI 
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