TaxTMI 
TaxTMI 
2012 (3) TMI 570
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....e activities. He undertakes business of share 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 D....
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....High Court in the case of Claris Lifesciennces (supra), once the approval 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 p....
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....he price quote is lower and sells the same script on another exchange say NSE where the price quote 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....
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....nsaction cannot be accepted in part as speculative transaction and part in non speculative transaction. At the most A 0 can treat net result as speculation income /loss after setting off the other leg of the transaction. But in the case of appellant net result is profit hence no disallowance can be made. Therefore considering the provisions of section 43(5). Your Honours are requested to kindly treat the entire arbitrage activity as single business activity and allow set off of all the arbitrage transaction with each other. The Ld A 0 can verify all the transaction which are carried out under arbitrage activity." 9. In our considered opinion, the Assessing Officer has to consider the composite transaction. The first appellate authority w....