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TMI Blog2005 (1) TMI 588X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee has produced copies of Stock Exchange Procedures and Regulations of Settlement of Transactions. All these were not produced at the time of hearing before the Assessing Officer. The Assessing Officer may have to examine the issue in the light of these procedures and should also keep in mind advancement of procedures in relation to trading in shares. We, therefore, in the interest of justice, set aside the entire issue back to the file of the Assessing Officer with a direction to decide the same in accordance with law after going through the settlement procedures in the Stock Exchange as well as the consider the copies of detailed Contract Notes produced by the assessee, which according to the assessee, evidences the fact of const ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nil Agencies, through whom trading in shares was done, was also examined. Some of the Contract Notes for such transactions were examined only to conclude that wherever transactions in shares have taken place, there was no actual delivery of shares. Therefore, the Assessing Officer treated such transactions as in the nature of speculative transaction falling within the definition of section 43(5) of the Income-tax Act, 1961 ('the Act' for short). Several contentions raised by the assessee were not found favour with the CIT(A). In the light of the Explanation to section 73, the order of the Assessing Officer was confirmed and the assessee is aggrieved. 3. It is contended before us by the learned counsel for assessee that the assessee is a de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o filed copies of the Bangalore Stock Exchange Ready Referencer wherein detailed transactions relating to shares are discussed. According to him, now-a-days there can be no transaction without there being physical possession of the shares. The so-called speculation is not permitted in B-group shares and each transaction has to result in the ultimate delivery which fact has not been appreciated by the Assessing Officer. He read out from the settlement of deals in the Stock Exchange in the form of Capital Market Regulations of the National Securities Clearing Corporation Ltd., to impress upon us that the findings of the Assessing Officer are not based upon proper appreciation of facts of the case and without properly appreciating the advancem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tract in respect of raw materials or merchandise entered into by a person in the course of his manufacturing or merchanting business to guard against loss through future price fluctuations in respect of his contracts for actual delivery of goods manufactured by him or merchandise sold by him; or (b)a contract in respect of stocks and shares entered into by a dealer or investor therein to guard against loss in his holdings of stocks and shares 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 arbitrage to guard against loss which may arise in the ordinary course of his business as such member : shall not be deemed to b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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