AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2024 (11) TMI 156
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.... The assessee is engaged in the business of trading in fabrics, Real estate renting services, undertaking F & O activities in stock market etc. 3. We shall first take up the appeal filed by the Revenue. The first issue relates to the head of income, under which the rental income earned by the assessee is required to be assessed. The assessee owned properties and had given them on rent. It earned rental income of Rs. 3,88,14,052/- from those two properties. The assessee declared the same as income under the head "Income from House Property". The AO, however, took the view that the assessee has collected rent under the name "Licence Fees" and hence the same should constitute its business income. Further, one of the objects of the assessee wa....
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.... of Principle of Consistency, which, in our view, cannot be faulted with in this case. Accordingly, we are of the view that the Ld CIT(A) was justified in holding that the rental income received by the assessee is assessable under the head "Income from House Property". 5. The next issue urged by the Revenue relates to the treatment of loss incurred by the assessee in F & O Transactions as normal business loss and not as speculation loss as held by the AO. The assessee had incurred loss of Rs. 14,99,282/- in F & O transactions as speculation loss and accordingly held that the same could be set off against speculation gain only. The AO also recorded a fact that the broker note issued by M/s Motilal Oswal has mentioned the F & O transaction t....
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....through price fluctuations; or (c) a contract entered into by a member of a forward market or a stock exchange in the course of any transaction in the nature of jobbing or arbitrate to guard against loss which may arise in the ordinary course of his business as such member; [or] (d) an eligible transaction in respect of trading in derivatives referred to in clause [(ac)] of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) carried out in a recognised stock exchange; (or) (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 transactio....
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....ecognised stock exchange as referred to in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and which fulfils such conditions as may be prescribed and notified79 by the Central Government for this purpose; Explanation 2.-For the purposes of clause (e), the expressions- (i) "commodity derivative" shall have the meaning as assigned to it in Chapter VII of the Finance Act, 2013; (ii) "eligible transaction" means any transaction,- (A) carried out electronically on screen-based systems through member or an intermediary, registered under the bye-laws, rules and regulations of the 80[recognised stock exchange][Sub. for "recognised association" by the Act No. 12 of 2020, w.e.f. 1-4-2020.] for trading i....
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....passed by Ld CIT(A) on this issue. 7. We shall now take up the Cross objection filed by the assessee. The only issue urged by the assessee is related to the disallowance made by the AO u/s 14A of the Act. 8. The Ld A.R submitted that the assessee did not earn any exempt income during the year under consideration from out of the investments held by it. However, the assessee disallowed a sum of Rs. 14,200/- voluntarily in the return of income. The AO, however, computed the disallowance u/s 14A of the Act as per Rule 8D of IT Rules and accordingly disallowed a further sum of Rs. 10,20,312/-. The Ld CIT(A) also confirmed the same. 9. The Ld A.R submitted that it is now well settled proposition of law that no disallowance u/s 14A is called fo....