2009 (5) TMI 798

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....t Jacinta Zimik Vashai ORDER Per: Shailendra Kumar Yadav: Both these appeals have been filed by the same assessee and are arising from the common order of the CIT(A) on similar issue, so they are being disposed of by a common order for the sake of convenience and brevity. 2. The main grounds raised by the assessee is that the CIT(A) failed to appreciate that the transactions executed b....

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....nal held as under; "4. The rival contentions with regard to the above have been very carefully considered. The issue that is before us is with reference to the provisions of Sec.43(5) of the Act and the provisos therein and, accordingly, we reproduce Sec.43(5) along with proviso (c) which is relevant to the section. Sec.43(5)"speculative transaction" means a transaction in which a contract f....

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....thasarathi. Clause (c) of Sec.43(5) says that any contract entered into by a member with another member of the stock exchange, which transaction is in the nature of jobbing or arbitrage to guard against 1ss which may arise in the ordinary course of the business of the member, such transaction shall not be deemed to be a speculative transaction. As observed above, in the remand report dated 8.11....

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....on 43(5) clearly shows that transactions in the nature of jobbing or arbitrage are not to be considered as speculative transaction. Therefore, when a transaction is not to be treated as speculative transaction, the loss suffered out of the transaction would be a business loss. It has to be allowed as such. We accordingly, uphold the claim of he assessee for both the assessment years". 4. Facts ....