2024 (8) TMI 533

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.....K. Agrawalla, ld AR appeared for the assessee and Shri S.C. Mohanty, Sr. DR appeared for the revenue. 3. It was submitted by ld AR that for both the assessment years under consideration, a common issue involved was in regard to the action of the Assessing Officer in disallowing the set off of the loss in respect of derivative transaction by treating the same as speculative transaction. It was the submission that for the assessment year 2015-16, the assessee had claimed a loss of Rs. 98,04,793/- and for the assessment year 2016-17, the assessee had claimed a loss of Rs. 2,01,94,788/-. It was the submission that for the assessment year 2015-16, a sum of Rs. 96,04,793/- comprised of loss representing Rs. 82,05,368/- being loss in trading o....

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....d the loan to Outram Properties Pvt Ltd., the said company did not respond to the notice issued by the Assessing Officer. It was the submission that as the loan had also been repaid and TDS had also been deducted on the interest paid, the addition as made by the AO is liable to be deleted. 5. It was also the submission that the Assessing Officer having made the addition during the assessment year 2015-16, did not consider the corresponding effect in the assessment year 2016-17, when the same had been repaid by the assessee. 6. In reply, ld Sr DR submitted that the ld CIT(A) has considered the claim of the assessee in regard to section 43(5)(d) of the Act in para 6.1.1 of his order. It was the submission that the disallowance as made b....

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....tract the provisions of section 43(5)(e) of the Act, which reads as follows: "(e) an eligible transaction in respect of trading in commodity derivatives carried out in a [recognised stock exchange] [Sub. for "recognised association" by the Act No. 12 of 2020, w.e.f. 1-4-2020], which is chargeable to commodities transaction tax under Chapter VII of the Finance Act, 2013 (17 of 2013)," 10. The provisions of section 43(5)(e) of the Act has been brought into the Statute book w.e.f. 1.4.2014. Section 43(5)(e) of the Act talks of commodity derivatives. Foreign currency transaction admittedly is commodity derivatives. Here also, the requirement of section 43(5)(e) of the Act is that the transactions are to be made through recognised St....