2018 (3) TMI 731

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....ion treating assessee's normal business loss of Rs. 42,55,595/- pertaining to hedging transactions carried out at MCX to be speculation loss not entitled to be set off against such normal business income as well as levying consequential penalty of Rs. 19,72,470/-; respectively, in proceedings u/s. 143(3) & 271(1)(c) of the Income Tax Act, 1961; in short "the Act". 2. Case called twice. None appears at assessee's behest. The registry has already sent it a combined RPAD notice dated 19.02.2018. We thus proceed ex parte against the respondent assessee in instant two cases. 3. We have heard learned Departmental Representative strongly reiterating Assessing Officer's case qua the instant quantum as well as consequential penalty issue. It emerg....

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....dering the judgment of Hon'ble ITAT Ahmedabad in the case of Vimal Oil & foods Ltd. Vs ACIT, Cirde-8, Ahmedabad, ITA NO. ITA.No.2392/Ahd/2011 ASST. YEAR 2008-09 pronounced on 09.01.2015 along with other judicial pronouncements as discussed above, it is held that MCX transaction even prior to its recognition as notified by Central Government is allowable as normal business loss with retrospective effect i.e. with effect from 1-4-2006. In the case of Vimal Oils & Foods Ltd. Vs ACIT, the Hon'ble ITAT, Ahmedabad adjudicated as mentioned below: "5. In view of above, we are of the view that assessee's derivative trading through MCX Stock Exchange in A.Y. 2007-08 was non speculated transaction; therefore, loss incurred in such trans....

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....right or create an obligation but merely relates to procedural mechanism, then it is deemed to be retrospective unless such an inference is likely to lead to an absurdity. If the amendment is made in procedural mechanism, it will apply to all the proceedings pending or to be initiated. Once in the statute, it has been provided that w.e.f. 1.4.2006, an eligible transaction carried out in a recognized Stock Exchange will not be treated as speculative transaction, then simply because procedural mechanism has taken a long time to recognize the Stock Exchange, it will not lead to an inference that the same would be applicable from the date when the Stock Exchange has been recognized by the Central Govt. The notification issued under Rule 6DDB, d....