The ITAT held that the assessee's transactions did not fall ...

ITAT ruled no speculative transactions as actual delivery to buyer. Interest disallowance rejected for business purposes. Precedent followed.

Case Laws Income Tax

July 4, 2024

The ITAT held that the assessee's transactions did not fall within the provisions of speculative transactions u/s 43(5) as the ultimate settlement was through actual delivery to the buyer. Disallowance of interest u/s 36(1)(iii) was rejected as the advance to parties was for business purposes, not necessarily bearing interest, and supported by audited balance sheet reflecting availability of interest-free funds. The decision aligned with the precedent set by the Supreme Court in Reliance Industries Ltd, leading to deletion of the addition u/s 36(1)(iii) in favor of the assessee.

View Source

← Previous Next →

The ITAT held that the assessee's transactions did not fall ...

ITAT ruled no speculative transactions as actual delivery to buyer. Interest disallowance rejected for business purposes. Precedent followed.

Case Laws Income Tax

July 4, 2024

You may also like:

The Appellate Tribunal addressed two key issues. Firstly, regarding speculative transactions u/s 43(5), it was determined that the transactions of purchasing and selling...

Disallowance of provision for foreign exchange fluctuations and loss on forward contracts u/s 43(5) regarding speculative transactions. It clarifies that foreign...

Disallowance of speculative loss occurred on derivative transactions - Tribunal has correctly held that there is an actual delivery and constructive delivery and they...

Speculative or non speculative business - treatment of “high sea sale” - when the goods are not taken by the delivery the entire issue is treated as speculative...

Nature of loss - Speculative loss or normal business loss - Marked to market loss on hedging of the transaction - The Appellate Tribunal held that speculative...

Addition made towards profit in money market operations - in this case the physical delivery has not taken place and therefore the transactions of sale and purchase of...

Nature of loss - "business loss" or "speculative transactions" - what is "hedging transaction" and when it can be a "speculative transaction"? - safeguard against loss...

Loss suffered by a company in share transactions is to be treated as a speculative loss within the meaning of s. 73, notwithstanding the fact that there was actual...

Claim of loss in the stock business denied - loss from commodity stock trading - transaction could not be held to be a bogus transaction - delivery taken by arhtias in...

The ITAT addressed various issues including disallowance u/s 14A r.w.r.8D, where Revenue challenged deletion of disallowance made by AO. ITAT upheld CIT(A)'s decision,...

Speculative loss - trading transactions on NSEL platform - For the purpose of carrying out transaction with NSEL they use to keep 3.5% of the value of the transaction as...

Loss from derivatives transactions is to be allowed to be set off against the profit arising out of delivery based transactions as both are speculative/deemed...

TP Adjustment - Eligible International Transaction - safe harbor rules - The court examined the eligibility of international transactions under Rule 10TC of the Income...

Disallowance of interest expenses incurred for non-business purposes - The ITAT found that the interest expenditure claimed by the assessee was allowable due to the...

Disallowance u/s 14A read with Rule 8D - the AO has not computed any disallowance under Rule 8D(2)(i) and Rule 8D(2)(ii) of the Rules and only under Rule 8D(2)(iii) of...

Quick Updates: