Case Law Details
In this case during the course of assessment proceedings, it was noticed by the Assessing Officer that the assessee company had incurred loss of Rs. 1,15,880/- in respect of derivative transaction during the period under consideration. Assessing Officer further noticed that the transactions in question have been made on National Stock Exchange and Bombay Stock Exchange which were not recognized for the purpose of Rule 6DDA and the notification to recognize these stock exchanges was issued only on 25.1.2006. Therefore, Assessing Officer held that the loss arising out of purchase and sale of shares, delivery of which were not physical made, were liable to be considered in light of the provisions of Explanation to Section 73 of the I.T. Act, 1961. Accordingly, the loss of Rs. 1,15,880/- was disallowed by the Assessing Officer treating the same as speculative loss.
Ld. Commissioner of Income Tax (A) has confirmed that the Assessing Officer’s action on this account as relevant details pertaining to the source of income and also necessary certificate issued by the competent authority granting the assessee the status of NBFC was not produced before him. However, before me the assessee’s counsel has filed the certificate of registration from the RBI to enable the assessee company to carry on the business of non-banking financial institution. In view the observation of the Ld. Commissioner of Income Tax (A) that proper details were not available in this case and the necessary certificate of registration as NBFC was not produced, I deem it fit to remit back the matter to the file of the Assessing Officer to consider the issue afresh, after obtaining the necessary details and going through the certificate of registration as NBFC produced before me.
INCOME TAX APPELLATE TRIBUNAL, DELHI
ITA No. 1132/Del/2012 – A.Y.: 2006-07
Harsha Capital Services Ltd. Vs. ITO
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