https://www.taxtmi.com/caselaws?id=448670 The ITAT Delhi ruled in favor of the assessee regarding derivative transaction losses. The AO had denied set-off of derivative losses against wine shop profits, treating them as speculative transactions under section 43(5) since they weren't conducted through SEBI-registered intermediaries. The AO also made additions for alleged margin money payments on estimated basis. The ITAT found that while the derivative loss of Rs 14,43,040/- was properly disallowed as speculative, the separate addition for estimated margin money payments was unjustified. The assessee provided ledger accounts and contract notes as evidence, and the loss payments were traceable to maintained books of accounts. The tribunal deleted the additional estimation-based addition, accepting only the original derivative loss disallowance. en-us Wed, 10 Jan 2024 00:00:00 +0530 Fri, 26 Jan 2024 15:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=448670 The ITAT Delhi ruled in favor of the assessee regarding derivative transaction losses. The AO had denied set-off of derivative losses against wine shop profits, treating them as speculative transactions under section 43(5) since they weren't conducted through SEBI-registered intermediaries. The AO also made additions for alleged margin money payments on estimated basis. The ITAT found that while the derivative loss of Rs 14,43,040/- was properly disallowed as speculative, the separate addition for estimated margin money payments was unjustified. The assessee provided ledger accounts and contract notes as evidence, and the loss payments were traceable to maintained books of accounts. The tribunal deleted the additional estimation-based addition, accepting only the original derivative loss disallowance. Case-Laws Income Tax Wed, 10 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=448670