Case Law Details
Nand Nandan Agrawal Vs Dy. CIT (ITAT Agra)
Impugned contract for derivatives in foreign currency was commodity as defined under section 43(5) and was entitled to exemption from being treated as speculative provided all other conditions as stipulated under section 43(5) were complied with. All such transactions in foreign currency derivatives were conducted through a recognized broker and were supportedby time-stamped contract notes. Also accounts of assessee, including those related to the foreign currency derivatives, were duly audited. Therefore, in view of proviso (d) to section 43(5), transaction in question could not be regarded as speculative and the assessee was entitled to set off of resulting loss against normal business income.
FULL TEXT OF THE ITAT JUDGMENT
These are assessee’s appeals for assessment years 2013-14 and 2014-15, issue involved therein, they are being disposed of by this composite order.
2. Facts, for convenience, are being taken from ITA No. 349/Agra/2016, wherein, the following grounds have been taken:
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