2016 (9) TMI 1436

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....cate ORDER N.R.S. Ganesan, Judicial Member: This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) - 15, Chennai, dated 16.12.2015 and pertains to assessment year 2011-12. 2. Shri Shiva Srinivas, the Ld. Departmental Representative, submitted that the only issue arises for consideration is with regard to addition of Rs. 60,66,466/-. According t....

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....refore, it has to be considered as speculative business, hence, the same cannot be set off against the other income of the assessee. 3. The Ld. Departmental Representative further submitted that the assessee's main business is retail gold jewellery. Therefore, Explanation to Section 73(4) would come into operation. Hence, the transaction of purchase and sale of derivatives has to be construed as ....

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....he claim of the assessee. 4. On the contrary, Shri M.P. Senthil Kumar, the Ld.counsel for the assessee, submitted that admittedly, the assessee is engaged in the business of jewellery. The assessee traded in derivatives in the Multi Commodity Stock Exchange. Referring to proviso to Section 43(5) of the Act, the Ld.counsel submitted that when trading was made in derivatives through a recognized St....