2012 (3) TMI 570

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....e trading on his own account. He filed his return of income on 27th July 2006, declaring total income of ` 49,59,160. The Assessing Officer completed the assessment vide order dated 28th November 2008, passed under section 143(3) of the Income Tax Act, 1961 (for short "the Act"), determining the income at ` 1,01,34,547, interalia, making additions on account of speculative income and income from forwards and options. The assessee carried the matter in appeal wherein the first appellate authority granted part relief. Aggrieved, the assessee as well as the Revenue are in appeal before the Tribunal. 3. We have heard the learned Counsel, Mr. Rakesh Joshi, representing the assessee and the learned Departmental Representative, Mr. D.S. Sunder Si....

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....al is granted in the relevant previous year, and in the absence of anything indicated to the contrary, the approval has to be taken as effective from the beginning of the relevant year. The issue is thus covered, in favour of the line of reasoning adopted by the assessee, by decision of the coordinate bench in the case of Anand Brothers (supra) and by Hon'ble Gujarat High Court's judgment in the case of Claris Lifesciences (supra). We Respectfully following these decisions, we uphold the grievance of the assessee and hold that the derivate transactions, entered into by the assessee at the recognized stock exchanges even prior to the date of notification in the relevant previous year, are to be treated as covered by the exclusion clause set ....

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....uote is higher. Later during the same day, he may get further opportunity to square off such transactions in the particular exchange to avoid delivery of shares. But if he does not get this opportunity to square off in any of the exchange then either has to take the delivery or offer delivery of that scrip. In this activity he earns the difference between two exchanges. An important factor to carry out such transactions is that the trader should have that scrip in stock, so incase if he has to deliver the share he can do at one exchange and take delivery at other exchange, in case if he could not square off this transaction. Hence during the normal course of business, the appellant had to settle some of the transactions on the same day wi....