9911796707
TMI Blog2024 (8) TMI 533X X X X Extracts X X X X X X X X Extracts X X X X ..... ) clearly shows that even though the assessee has made the claim of Rs. 43(5)(d) before the CIT(A), cunningly, the CIT(A) switched over his findings by relying upon the provisions of section 43(5)(a) of the Act, which was not a claim before him. In these circumstances, as the evidences in regard to nature of the transaction and the recognised stock exchange, if any, through whom the transactions have been carried out by the assessee are not before us, the issues in these appeals are restored to the file of the AO for the relevant assessment years to specifically examine whether the derivatives have been dealt with by the assessee for the assessment years 2015-16 and whether such derivatives are transacted through the recognised stock exchan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d No. CIT(A), Sambalpur/10130/2018-19 for the assessment years 2015-16 2016-17, respectively. 2. Shri S.K. Agrawalla, ld AR appeared for the assessee and Shri S.C. Mohanty, Sr. DR appeared for the revenue. 3. It was submitted by ld AR that for both the assessment years under consideration, a common issue involved was in regard to the action of the Assessing Officer in disallowing the set off of the loss in respect of derivative transaction by treating the same as speculative transaction. It was the submission that for the assessment year 2015-16, the assessee had claimed a loss of Rs. 98,04,793/- and for the assessment year 2016-17, the assessee had claimed a loss of Rs. 2,01,94,788/-. It was the submission that for the assessment year 2015 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ured loan creditors of the assessee. It was the submission that as the assessee had already repaid the loan to Outram Properties Pvt Ltd., the said company did not respond to the notice issued by the Assessing Officer. It was the submission that as the loan had also been repaid and TDS had also been deducted on the interest paid, the addition as made by the AO is liable to be deleted. 5. It was also the submission that the Assessing Officer having made the addition during the assessment year 2015-16, did not consider the corresponding effect in the assessment year 2016-17, when the same had been repaid by the assessee. 6. In reply, ld Sr DR submitted that the ld CIT(A) has considered the claim of the assessee in regard to section 43(5)(d) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rough recognised Stock Exchange. 9. It would also be worthwhile to extract the provisions of section 43(5)(e) of the Act, which reads as follows: (e) an eligible transaction in respect of trading in commodity derivatives carried out in a [recognised stock exchange] [Sub. for recognised association by the Act No. 12 of 2020, w.e.f. 1-4-2020], which is chargeable to commodities transaction tax under Chapter VII of the Finance Act, 2013 (17 of 2013), 10. The provisions of section 43(5)(e) of the Act has been brought into the Statute book w.e.f. 1.4.2014. Section 43(5)(e) of the Act talks of commodity derivatives. Foreign currency transaction admittedly is commodity derivatives. Here also, the requirement of section 43(5)(e) of the Act is that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion as has been shown in the paper book contains the PAN No. of Outram Properties Pvt Ltd. This being so, this issue is restored to the file of the Assessing Officer for re- adjudication and verification as to whether Outram Properties Pvt Ltd have filed their return of income for the relevant assessment year. The Assessing Officer shall examine the financial capacity of Outram Properties Pvt Ltd., and decide the issue after granting the assessee adequate opportunity of being heard to the assessee. 12. The Assessing Officer is directed to adjudicate the above issues in terms of the direction given above after allowing adequate opportunity of hearing to the assessee. 13. In the result, appeals of the assessee stand partly allowed for statist ..... X X X X Extracts X X X X X X X X Extracts X X X X
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