2019 (7) TMI 695

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.... (PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA) 1 This Tax Appeal under Section 260A of the Income Tax Act, 1961 [for short, "the Act, 1961"] is at the instance of the Revenue and is directed against the order passed by the Income Tax Appellate Tribunal, Ahmedabad dated 31st October 2018 in the ITA No.770/Ahd/2016 for the assessment year 2012-13. 2 The Revenue has proposed the following ques....

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....ions i.e. derivative transactions within the meaning of Proviso (d) to Section 43(5) of the Act not involving any purchase or sale of shares per se can be regarded as speculative loss for the purposes of set off in view of Explanation to Section 73 or not. The controversy involved in the present case is thus essentially legal in nature. 9.1 In the present appeal, the assessee seeks set of....

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....High Court held that once it is deemed to be a normal business loss on the basis of proviso appended to Section 43(5) of the Act, a question of applying Section 73 of the Act or the Explanation thereto for the purposes of refusing loss to be set off against business income is wholly incorrect. The Hon'ble Calcutta High Court after taking note of the decision of Hon'ble Delhi High Court in DLF Comm....

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.... under: "While appreciating the fact in perspective, we observe that against the total expense of Rs. 9.63 Lakhs, the turnover of the assessee in taxable stream stands at Rs. 406.59 Crores whereas the tax free income stands a meager amount of Rs. 6.l3 ]Lakhs. Therefore, the suo mota disallowance by the assessee is prima facie sufficient to cover the possible expense attributable to tax ex....