2019 (1) TMI 1595

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....ct, 1961 (here-in-after referred to as "the Act") dated 25/02/2015 relevant to the Assessment Year (AY) 2012-2013. 2. Revenue has raised the following ground of appeal: 1. "Whether the Ld.CIT(A) is right in law and on facts in deleting the addition/disallowance made on account of F & O Loss of Rs. 3,66,76,119/-" 3. The only issue raised by the Revenue is that Ld.CIT (A) erred in treating the loss incurred by the assessee in its derivatives transactions as nonspeculative. 4. Briefly stated facts are that the assessee in the present case is a Private Limited Company and engaged in the business of trading in derivatives, renting of motor cars and also deriving income under the head ''house property''. The assessee in its profit and lo....

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....ional Stock Exchange. 6.4 The Ld.CIT(A) also found that the transactions showing the losses of the assessee were supported with Time Stamp Contracts, the copy of invoices issued by National Stock Exchange. Therefore the Ld. CIT (A) observed that all the conditions as specified u/s 43(5)(d) of the Act have complied with. Accordingly, Ld.CIT(A) held that the impugned loss could not be treated as a speculative loss. Thus, the order the AO was reversed by Ld.CIT (A). 7. Being aggrieved by the order of Ld. CIT(A), the Revenue is in appeal before us. 8. Before us, both Ld.DR and Ld.AR relied on the order of authorities below as favorable to them. 9. We have heard the rival contentions and perused the materials available on record. The iss....

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....) carried out in a recognised stock exchange;] shall not be deemed to be a speculative transaction." 9.3 As per the above provisions, the transaction in derivative will not be treated as speculative if it fulfills the following conditions: 1. The transactions carried out electronically on screen based system. 2. The transaction is carried out through the registered stockbroker. 3. The transaction is supported by a time stamped contract note issued by such broker containing client code and permanent account number. 4. The transaction is carried out through the recognized stock exchange. 9.4 The Ld. CIT(A) in his finding has recorded that, the assessee has provided all the requisite details to justify that the loss claimed in ....