TaxTMI 
TaxTMI 
TaxTMI 
2015 (1) TMI 1275
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....ppeal stating that he met with an accident, seriously injured and hospitalized for more than three months and could not hand over the Commissioner of Income Tax (Appeals) order to A.R. for filing appeal time. Thus prays for condonation of delay. We have perused the reasons and are satisfied that there is a reasonable cause for the delay in filing of the appeal. In the interest of justice, we condone the delay of 60 days in filing of the appeal. The petition for condonation of delay is thus, allowed and the appeal is admitted. 3. Counsel for the assessee submits that both the issues in this appeal are decided by the co-ordinate Bench of this Tribunal in assessee's own case for the immediately preceding assessment year and he places a copy o....
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....regulated by RBI. The assessee is carrying on the forex transactions only in the course of its business and not as a separate business as observed by the Assessing Officer because the assessee is not a dealer in foreign exchange. The Hon'ble Bombay High Court in the case of CIT v. Badridas Gauridu (P) Ltd (supra) held that an assessee who is an exporter of cotton engaged in forward contracts with banks in foreign exchange is not a speculative transaction. It was held that loss deductible is business loss. While holding so, the Hon'ble Bombay High Court held as under :- "The assessee-company carried on business as export house. The assessee-company is an exporter of cotton. On 30th Dec., 1992, the assessee filed its return of incom....
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....represent speculative transactions. Accordingly, the Tribunal allowed the appeal. Being aggrieved, the Department has come by way of appeal to this Court. Findings The assessee was not a dealer in foreign exchange. The assessee was a cotton exporter. The assessee was an export house. Therefore, foreign exchange contracts were booked only as incidental to the assessee's regular course of business. The Tribunal has recorded a categorical finding to this effect in its order. The Assessing Officer has not considered these facts. Under s. 43(5) of the IT Act,"speculative transaction" has been defined to mean a transaction in which a contract for the purchase or sale of a commodity is settled otherwise than by the actual delivery or transfe....
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....e definition of goods. Besides, no person other than authorized dealers and money changers are allowed in India to trade in foreign currency, much less speculate. Sec.8 of the Foreign Exchange Regulations Act, 1973, provides that except with prior general or special permission of the RBI, no person other than an authorized dealer shall purchase, acquire, borrow or sell foreign exchange. 32. In fact, prior to the LERMS, residents in India were not even permitted to cancel forward contracts. The presumption of any speculative transaction is, therefore, directly rebutted in view of the legal impossibility and in view of the fact that foreign currency was neither commodity nor shares. 33. The definition of "speculative transaction", will no....
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....he relief under sec.80IB of the Act by excluding duty draw back from the profits derived from industrial undertaking. The assessee claimed deduction under sec.80IB of the Act including the duty draw back amount as profit derived from industrial undertaking. On appeal, the Commissioner of Income Tax (Appeals) following the decision of Hon'ble Supreme Court in the case of Liberty India v. CIT (317 ITR 218) up held the action of the Assessing Officer in excluding duty draw back for the purpose of computing relief under sec.80IB of the Act. The Commissioner of Income Tax (Appeals) held as under: "7.1 The assessee had claimed deduction u/s.80IB wherein they had included Duty Draw back amount as profits derived from industrial undertaking. ....