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TaxTMI 
TaxTMI 
TaxTMI 
2018 (12) TMI 1066
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....owing grounds:- "1. That in the facts and circumstances of the case and under law, the Ld CIT(A) has erred allowing the appeal of the assessee and deleting the disallowance of loss made by the assessee on account of Derivative Trading of Rs. 2,96,85,183/- 2. That in the facts and circumstances of the case and under law, the Ld. CIT(A) has erred in holding that disallowance u/s 14A read with Rule 80 will not apply where no exempt income is received or receivable during the previous year by ignoring the provisions of Rule 80 that provides for computation of expenditure in respect of not only those investments, income from which does not form part of total income but also those investments, income from which shall not form part of total i....
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....ions of the assessee to the various objections raised by the Assessing Officer, he held as follows:- "I have considered findings of the AO and the written submission, case laws and point-wise rebuttal filed by the AR on this issue, I think the AO's action of accepting only the positive gains by the assessee from derivative business and not accepting the losses incurred in some transactions in the same business is not justified. The AO should either accept the derivative business in its totality or he should have rejected it in totality. He cannot resort to accept only gains from it and reject losses incurred therein. Accordingly, assessee's appeal on grounds no 2 and 3 are allowed." 4. We find no infirmity in this order as admit....
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....per book. On the other hand the ld. DR relied in the order of the lower authorities. 4.1 From the aforesaid discussion we find that the assessee has incurred losses from the off market commodity transactions and the AO held such loss as bogus and inadmissible in the eyes of the law. The same loss was also confirmed by the ld. CIT(A). However we find that all the transactions through the broker were duly recorded in the books of the assessee. The broker has also declared in its books of accounts and offered for taxation. In our view to hold a transaction as bogus, there has to be some concrete evidence where the transactions cannot be proved with the supportive evidence. Here in the case the transactions of the commodity exchanged have no....
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....s and also perused the relevant material on record. It is observed that the claim of the assessee for the impugned loss incurred in trading in derivatives was disallowed by the authorities below mainly on the ground that the assessee had not given any margin money to the broker before the relevant transactions and in his statement, the Director of the broker company had admitted that his company was indulging in providing bogus loss in currency derivatives as per the requirement of the clients. At the time of hearing before the Tribunal, the learned DR has laid emphasis on these two aspects in support of the revenue's case. However, as contended by the learned counsel for the assessee by relying on the decision of Hon'ble Bombay Hig....
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....neness of the transactions made by the assessee on MCX Stock Exchange Ltd. was brushed aside by the A.O. on the ground that loss shown therein was Rs. 1,488/- whereas the assessee had claimed a loss of Rs. 5,17,141/-. As submitted on behalf of the assessee before the Assessing Officer as well as before us, expenditure was incurred by the assessee relating to the said transactions on account of brokerage, service tax and other charges levied by the broker aggregating to Rs. 5,15,653/- and accordingly the total loss as claimed by the assessee was to the tune of Rs. 5,17,141/-. As pointed out by the learned counsel for the assessee, this additional expenditure incurred by the assessee on account of brokerage, service tax and other charges was ....