TaxTMI 
TaxTMI 
2016 (4) TMI 428
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....rder for the sake of convenience. 2. First, we take up the assessee's appeal in ITA Nos.775 & 2685/Mds/2014 : 2.1 The ground in these appeals is with regard to confirming the addition made by the Assessing Officer by treating the business loss as speculation loss in stead of loss in foreign currency transactions. 3. The facts of the case as narrated for the assessment year 2010-11 are that the assessee claimed in this asst. year, loss of Rs. 28,77,36,636/- out of business income, which is said to be remunerated from the direct transactions undertaken by the assessee with State Bank of India(SBI). The assessee entered into 13 numbers of SWAP options contract with SBI and the swaps were made against Swiss Franc(CHF). Under curren....
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....ssessing Officer rejected the loss claimed by the assessee. On appeal, CIT(Appeals) confirmed the finding of the AO placing reliance on the judgment of the Mumbai High Court in the case of CIT v. Bharat R. Ruia (HUF) (337 ITR 452). 4. Before us, the assessee argued that the position in the assessment year 2010-11 on the issue is different and the Commissioner of Income-tax(Appeals) decided the issue against the assessee. The ld. AR relied on various decisions of the Tribunal, which is as follows: 1) M/s. Majestic Exports v. JCIT in ITA Nos.1336 & 3072/Mds/2014 dated 24.7.2015 2) M/s. S.P.Apparels Ltd. v. DCIT [ITA No.1327/Mds/2014 dt. 17.4.2015] 3) M/s. Cotton Blossom (India) P. Ltd. v. ACIT [ITA No.1642/Mds/13 dated 30.1.2015] ....
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....ading in derivatives referred to in clause [(ac)] of section 2 of the Securities Contracts (Regulation Act, 1956 (42 of 1956) carried out in a recognized stock exchange;] Shall not be deemed to be a speculative transaction." The claim of the assessee could be allowed only when it satisfies the exceptions provided in sec.43(5)(d) of the Act. However, in the present case, it is admitted that the transaction carried out by the assessee does not fall in any exceptions provided above and it is not at all carried out through any recognized stock exchange. The claim of the assessee is rightly denied by the AO as well as by CIT (Appeals) as business loss, as there is no relationship with term loan availed by the assessee or interest payable o....
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....atory requirement of approval of gratuity scheme by the competent authority. Accordingly, this ground of appeal is allowed for statistical purposes. 8. The next common ground is with regard to allowability of deduction u/s.80IA of the Act by following the judgment of the Madras High Court in the case of Velayudhaswamy Spinning Mills (P) Ltd. v. ACIT (340 ITR 477), wherein it was held that losses and depreciation of the years earlier to the initial assessment year which have already been absorbed against the profits of other business cannot be notionally brought forward and set off against the profits of the eligible business for computing the deduction u/s.80IA of the Act and there is no mandate in sec.80IA(5), claim of deduction u/s. 80....
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.... any payment made which is chargeable under this Act and is payable outside India or in India to a non-resident not being a company or to a foreign company on which tax is deductible at source. Therefore, the first condition required to be fulfilled is the payment must be chargeable under the Act, thereafter the question of deduction of tax will arise. Section 195(1) also prescribes that tax has to be deducted while making payment to non-resident which is chargeable under the provisions of the Act. Therefore, the condition precedent for deduction of tax is that income must be chargeable under the provisions of the Act. In the facts of the present case, the assessee has not produced the agreement entered into by the assessee with foreign ....