2019 (5) TMI 1707

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....r dated 30.04.2015 passed by the Commissioner of Income-tax (Appeals)-17, New Delhi qua the assessment year 2011-12 on the grounds inter alia that:-  "1.  The Ld. CIT(A) has erred in deleting the addition of Rs. 1,13,85,924/- derived on account of forward contracts in respect of 'Foreign currency' being speculative profit can be set off of against the loss of Rs. 1,04,25,309/- debited in gold desk account.    2. The Ld. CIT(A) agreed with the AO that the loss from gold desk transactions is speculative but erroneously Ld. CIT(A) suo-moto took the stand that forward contracts is speculative without being claimed by the assessee during entire assessment proceeding.  Even the assessee in the year under refe....

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....lanation offered & proceeded to hold the loss of Rs. 1,04,25,309/- as speculative loss."   4. Briefly stated the facts necessary for adjudication of the controversy at hand are : Assessee is into manufacturing and export of gold jewellery and procures pure gold from Mineral & Metal Trading Corporation Limited. Assessing Officer noticed that the assessee has claimed loss on Gold Desk-D amounting to Rs. 1,04,25,309/- of which full details of loss was called. Assessee filed extensive details extracted in para 3 of the assessment order by the AO.  From the reply filed by the assessee, AO further observed that assessee's transactions are in the nature of hedging and covered under the exceptions provided in section 43(5)(a) and 43(5)(b....

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....dated 27.04.2018 by dismissing the appeal filed by the assessee and by partly allowing the appeal filed by the Revenue for statistical purposes.  Then, the assessee carried the matter before the Hon'ble Delhi High Court who has passed the order dated 29.04.2019 in WP (C) 4468/2019 and ITA 430/2019  by setting aside the matter to the AO to examine the issue with respect to verification of transactions and correlation with specific contracts by returning following findings :- "4. We have heard counsel for the parties. The limited relief that the assessee seeks is that even while directing the remand for reconsideration at the behest of the Revenue in its appeal, ITAT failed to appreciate the assessee's contention with respect to ....