Disallowance stating hedging transactions in non-cleared securities as illegal is unsustainable

Atul C. Vyas Vs ACIT (ITAT Mumbai) ITAT Mumbai held that disallowance alleging that the hedging transactions in ‘non-cleared securities’ are illegal are unsustainable in law Facts- During the course of survey, certain share certificates registered in the name of the assessee were found. The value of those shares was ₹ 86,300/-. Hence the assessee was asked to explain the sources for making the above said investments. It was submitted that these share certificates do not belong to the assessee and they actually belonged to the customers of the Share broker. It was explained that, as per p...