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TMI Blog2016 (9) TMI 1436X X X X Extracts X X X X X X X X Extracts X X X X ..... reated as speculative transaction within the meaning of Section 43(5) of the Act. The transaction made in derivatives through Multi Commodities Stock Exchange was exempted under proviso (d) to Section 43(5) of the Act. Therefore, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. - Decided in favour of assessee. - ITA No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dity Exchange. The assessee claimed that the transaction is only a business transaction. Referring to Section 43(5) of the Income-tax Act, 1961 (in short 'the Act'), the Ld. D.R. submitted that the assessee could not produce necessary material before the Assessing Officer to prove that the transaction was carried out through Multi Commodity Stock Exchange. No proper stamped voucher or cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(Appeals), the Ld. D.R. submitted that the CIT(Appeals) by referring to the Notification dated 22.05.2009, found that the derivative is a financial instrument whose value depends upon the value of other underlying financial instrument which requires no initial net investment or little initial net investment that would be settled at a future date, therefore, Explanation to Section 73(4) of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble at all. 5. We have considered the rival submissions on either side and perused the relevant material available on record. In this case, the assessee is trading in derivatives in the Multi Commodity Stock Exchange, which was recognized. Therefore, the same cannot be treated as speculative transaction within the meaning of Section 43(5) of the Act. In other words, the transaction made in deri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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