SEBI Ad-Interim Order Vacated: Assessee’s Genuine Business Loss Upheld

Kundan Rice Mills Ltd. Vs ACIT (ITAT Delhi) Factual Background Kundan Rice Mills Ltd., a long-time trader and member of commodity exchanges such as MCX, declared losses from trading in futures and options (F&O) during the relevant assessment year. The company had consistently conducted such trades for over a decade and maintained proper books of account recording all transactions. The Assessing Officer (AO), while relying on an ad-interim SEBI order dated 20/22.08.2015, disallowed the claimed losses, questioning the economic rationale of the trades and suspecting them to be colorable devic...