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Issues involved: Appeal by Revenue against deletion of addition made by Assessing Officer, treatment of loss from share transaction as speculation loss, eligibility for set off against other heads of income.
Summary: The appeal before the Appellate Tribunal ITAT Chennai involved a dispute between the Revenue and the assessee regarding the treatment of a loss from share transactions. The Revenue contested the deletion of an addition made by the Assessing Officer, claiming that the loss should be treated as speculation loss and not allowed to be set off against other heads of income. The Appellate Tribunal considered the facts that the assessee, a medical practitioner running an ultrasound scan center, had filed her return of income for the assessment year 2008-09, showing income of Rs. 9,65,200. The Assessing Officer assessed the income at Rs. 68,89,899, disallowing the loss of Rs. 24,06,208 from share transactions as speculation loss. The learned Commissioner of Income-tax (Appeals) allowed the set off of the loss, holding that the transactions were settled by delivery or transfer of scrips, making them eligible transactions carried out in a recognized stock exchange. The Commissioner found that the transactions satisfied the criteria for "eligible transactions" as per the Explanation to section 43(5)(d) of the Income-tax Act, thus allowing the set off against other heads of business or professional income. The Revenue contended that section 43(5)(d) was not applicable in this case, arguing that the transactions were not derivatives as specified. However, the Tribunal found that the transactions were delivery-based and actual delivery had taken place, leading to the conclusion that the loss was not speculative within the meaning of section 43(5) of the Act. Ultimately, the Tribunal confirmed the order of the Commissioner of Income-tax (Appeals) and dismissed the appeal of the Revenue. The cross-objection filed by the assessee in support of the Commissioner's order was also dismissed as no grounds were raised challenging the decision. In conclusion, both the appeal of the Revenue and the cross-objection of the assessee were dismissed by the Appellate Tribunal ITAT Chennai.
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