9911796707
TMI Blog2013 (11) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... ive business by the learned Assessing Officer. 2. That the appellant carves for permission to add, delete or amend the grounds of appeal before or at the time of hearing of appeal." In this case, the assessee has raised the sole ground of appeal, contending that the Commissioner of Income-tax (Appeals) erred in law and facts in confirming the disallowance of Rs. 3,85,268 on account of loss from derivative business by the learned Assessing Officer. The learned authorised representative filed written submissions in the form of brief synopsis. However, the learned Departmental representative placed reliance on the order passed by the Commissioner of Income-tax (Appeals). We have carefully perused the rival submissions, facts of the case and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be supported by time stamped contract note, issued by the stockbroker or subbroker and unique identification number and permanent account number should be indicated in the contract note. It was contended by the learned authorised representative that the assessee has complied with the provisions of section 43(5)(d) of the Act by carrying out the transactions electronically on screen-based system and also through the recognised stock exchange. The condition, which is not complied with by the assessee is that the assessee had no proper contract note issued by the sub-broker, which are time-stamped, indicating necessary details. The assessee only had the trade confirmation report and final settlement bills and she was not aware of the technic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l delivery. However, certain categories of transactions are excluded from the purview of the said provision. These restrictions were essentially designed as an anti-evasion measure to prevent claims of artificially generated losses in the absence of an appropriate institutional infrastructure. Recent systematic and technological changes introduced by stock markets have resulted in sufficient transparency to prevent generating fictitious losses through artificial transactions or shifting of incidence of loss from one person to another the screen based computerised trading provide for an excellent audit trail. Therefore, the present distinction between speculative and non-speculative transactions, particularly relating to derivatives is no mo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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