2023 (8) TMI 1641

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....ent year 2011-12 are by the Income Tax Appellate Tribunal, Ahmedabad. 2. Heard learned Senior Standing Counsel Mr. Varun K. Patel appearing with Mr. Dev Patel learned advocate for the revenue and learned Senior Advocate Mr.Saurabh Soparkar appearing with learned advocate Mr.Bandish Soparkar for the assessee on caveat. 3. The Revenue has raised the following substantial questions of law arising out of impugned judgement and order :- "[a] Whether in the facts and circumstances of the case and in law, the learned ITAT has erred that the finance was availed for the business purpose and the loss claimed is not the speculative loss, without appreciating the fact that it was categorically established as per the statement of Shri Nil....

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....e record, has erroneously held in favour of the assessee by reversing the concurrent findings arrived by the Assessing Officer and CIT(A) by allowing the loss of Rs.14,42,91,136/- claimed by the assessee as losses arising from the transactions carried out by National Spot Exchange Limited ('NSEL' for short) during the previous year. 5. It was submitted that the assessee has carried out such transactions without affecting any physical delivery either of purchase of the goods or sale thereof, which is a prerequisite for carrying out the transaction on NSEL. 6. It was submitted that the assessee has admitted the transaction to be not of purchase and sale but the same was carried out to avail the short term finance. 7. On the other han....

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....wed the deduction claimed by the assessee on account of transaction charges on the ground that the same ought to have been recovered by the assessee from the clients. As submitted on behalf of the assessee-company before the authorities below as well as before the Tribunal, there was no such obligation on the part of the assessee to recover the transaction charges from the customers and the decision not to recover the same from the clients was taken as a matter of business expediency. The transaction charges actually represented additional cost of funds raised by the assessee-company for the purpose of its business and the expenditure incurred on account of the same was wholly and exclusively for the purpose of business of the assessee as r....