2012 (10) TMI 1240

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.... Bhavnesh Saini, J. This appeal by the Revenue is directed against the order of ld. CIT(A), Ghaziabad dated 04.06.2012 for the assessment year 2006-07 on the following ground : "1. The Ld. CIT(Appeals) has erred in law in treating the entire loss of Rs. 13,13,142/- as loss from derivative transactions to which section 43(5)(d) is applicable ignoring the fact that the loss was also due to ....

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....urities Ltd. and SPFL Security Ltd. are members of BSE and NSE only, hence, they are recognized Stock Exchange. Therefore, speculative provisions are not applicable in their case. It was claimed that the case of the assessee is covered by proviso to section 43(5) of the IT Act. The AO, however, did not accept the explanation of the assessee and set off of speculation loss of Rs. 13,13,142/- agains....

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....ction in respect of trading in derivatives referred to in section 2 of the Securities Contracts (Regulation) Act,, carried out in a recognized Stock Exchange, shall not be deemed to be a speculative transaction. It was explained that since the assessee transacted the transaction through recognized Stock Exchange and no adverse inference is drawn, therefore, the order of the AO is unjustified. The ....

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....by the assessee through recognized Stock Exchange, therefore, it cannot be treated as speculative transaction. Therefore, the loss from future and option transaction is adjustablefrom the profit from food grain business. The appeal of the assessee was accordingly allowed. 3. The ld. DR relied upon the order of the AO. On the other hand, the ld. Counsel for the assessee reiterated the submission....