2018 (10) TMI 720

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.... Respondent : Shri M. K. Patel, A.R. ORDER PER PRADIP KUMAR KEDIA - AM: The captioned appeal has been filed at the instance of the Revenue against the order of the CIT(A)-1, Ahmedabad ('CIT(A)' in short), dated 23.05.2016 arising in the assessment order dated 30.01.2015 passed by the Assessing Officer (AO) under s. 143(3) of the Income Tax Act, 1961 (the Act) concerning assessment year 20....

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.... that transactions of trading in commodity derivative has not been carried on delivery basis but settled otherwise than delivery and consequently the loss arising therefrom is speculative in nature. 4. In the first appeal, the CIT(A) revisited the factual aspects as well as the legal position in this regard and found that the case of the assessee is squarely covered by the exceptions provided a....

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....ant further stated that NSE and MCX are recognized for derivative transactions on 25.01.2006 and 25.05.2009 respectively. Therefore, transactions in currency derivatives on future basis in the year under consideration are in the nature of business transactions and not in the nature of speculative transactions. The A.R. of the appellant also relied upon following judgments of Jurisdictional Tribuna....

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....decided above and the disallowance of losses in MCX of Rs. 74,18,448/- is deleted. This ground of appeal is allowed." 5. We have heard rival submissions on the issue and also perused the orders of the AO and CIT(A). We find lack of merit in the appeal of the Revenue at the first instance. The CIT(A) rightly held that the assessee executed currency transactions in derivative segment on the platf....