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2014 (9) TMI 1083 - ITAT MUMBAIPenalty u/s 271(1)(c) - addition made by mere change of head of income - assessee considered NCDEX/MCX as a stock exchange within the meaning of section 43(5) of the Act and thereby considered the commodity trade loss as a business loss against speculation loss - Held that:- coordinate Bench of this Tribunal in the case of ACIT vs. Arnav Akshay Mehta (2012 (9) TMI 447 - ITAT MUMBAI) wherein it was held that assessee’s derivative trading through MCX stock exchange in the A.Y. 2007-08 is non-speculation transaction and, therefore, loss incurred is to be treated as normal business loss. The Bench also observed that transactions carried out through MCX stock exchange after 1-4-2006 would be eligible for being treated as nonspeculation within the meaning of section 43(5)(d) of the Act. In the instant case also the assessment year under consideration is A.Y. 2007-08, therefore, as per the proposition laid down by the co-ordinate Bench above the loss incurred by the assessee should be treated as normal business loss. Once such loss is treated as business loss, mere treatment by the A.O. as speculation loss will not be justified to levy penalty u/s 271(1)(c) of the Act. Thus we hold that addition made by mere change of head of income will not attract penalty u/s 271(1)((c) of the Act. The A.O. is directed to delete the same - Decided in favour of assessee
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