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TMI Blog2023 (6) TMI 1423X X X X Extracts X X X X X X X X Extracts X X X X ..... identity number along with PAN and it is outside the ambit of the definition of speculative transaction defined u/s 43(5) HELD THAT:- We find that the impugned order passed by the ld. CIT(A) by which sustaining the order passed by the AO did not allow the claim of the assessee to adjust loss with assessee s normal income is not in accordance with law. Since, the insertion of clause (d) to the provision of section 43(5) of the Act, the transaction in respect of trading in derivative as prescribed in clause (d) inserted in provision of section 43(5) would not be a speculative transaction in view of the judgement of Snow Ten Investment Ltd. [ 2019 (5) TMI 1165 - SUPREME COURT ] Therefore, the view taken by the authorities below is here by not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction regarding allowability of losses on account of forex derivatives. 5. That on the facts and circumstances of the case, ld. CIT(A) has not provided the reasonable opportunity of being heard which is contrary to the principles of natural justice. 6. That the appellant humbly craves leave to add, amend, alter, withdraw, delete or substitute all or any of the ground(s) of appeal at the time of hearing. 2. Brief facts of the case are that the assessee has filed its return of income on 29.09.2013 for the assessment year in question. Subsequently, in the case of assessee, return was selected for scrutiny under CASS and notices u/s 143(2) and 142(1) were issued upon the assessee. In response to such notices, ld. AR of the assessee appeared bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in foreign currency through SEBI registered broker who is a member of United Stock Exchange of India Limited (USEL) and these derivative transactions are carried out through USEL which is a recognized stock exchange and these transactions are backed by time stamped contract notes carrying unique client identity number along with PAN and it is outside the ambit of the definition of speculative transaction defined u/s 43(5) of the Act. He further contended that the Proviso (d) to section 43(5) of the Act was inserted by Finance Act, 2005 with effect from 01.04.2006 and submitted that the said proviso to section 43(5) curved out an exception to the definition of speculative transaction and due to this the loss suffered in the transaction in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning the order passed by the AO did not allow the claim of the assessee to adjust loss of Rs. 61,33,487/- with assessee s normal income is not in accordance with law. Since, the insertion of clause (d) to the provision of section 43(5) of the Act, the transaction in respect of trading in derivative as prescribed in clause (d) inserted in provision of section 43(5) would not be a speculative transaction in view of the judgement rendered by Hon ble Supreme Court in the case of Snow Ten Investment Ltd. vs PCIT (supra). Therefore, the view taken by the authorities below is here by not in accordance with law. Accordingly we set aside the order passed by the ld. CIT(A) and direct the AO to allow the claim of assessee to set off loss suffered by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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