2018 (10) TMI 720

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..... ’ and covered by the exceptions provided to Section 43(5)(d) of the Act. In view of the provisions of Section 43(5)(d) of the Act read with Section 2 of Securities Contracts (Regulation) Act, 1956, such derivative transactions of the nature of currency futures are to be excluded from the ambit of the speculative transactions. Consequently, the loss arising from exchange traded currency derivatives .....

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..... aised by the Revenue reads as under:- That the ld. CIT(A) erred in law and on facts in deleting the addition of ₹ 74,18,448/- made on account of disallowance of speculation loss. 3. Briefly stated, the assessee, a domestic company, is engaged in the business of trading in commodities like gold, silver, bullion etc. and shares as well as carried out derivative transactions at commod .....

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..... of the Act. The relevant operative part of the order of the CIT(A) reads as under: 5.5 I have gone through the facts of the case, findings of A.O. in assessment order, submissions of the appellant and provisions of section 43(5) of the Act. The A.O. as per provisions of sub-section (5) of section 43 of the Act treated transaction in which contract for purchase or sale of any commodities incl .....

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..... t is held that the derivatives include foreign currency and call option/put option are transactions of derivative markets cannot be termed as speculative in nature, as held by Mumbai Tribunal in the case of IVF Advisors Pvt. vs. ACIT (supra). Going through the provisions of the Act u/s. 43(5)(d) and decisions of the Tribunals and Courts, the currency derivative transactions in recognized stock exc .....

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..... which is in the realm of eligible transaction and covered by the exceptions provided to Section 43(5)(d) of the Act. In view of the provisions of Section 43(5)(d) of the Act read with Section 2 of Securities Contracts (Regulation) Act, 1956, such derivative transactions of the nature of currency futures are to be excluded from the ambit of the speculative transactions. Consequently, the loss ari .....

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