Court : Kolkata
..... true and proper interpretation of the explanation to section 73 of the income tax act, 1961, the tribunal was justified in law in holding that the loss of rs.3,24,76,185/- incurred in eligible transactions within the meaning of proviso (d) to section 43(5) not involving any purchase or sale of shares as such was speculation loss ?. ..... eligible transaction in respect of trading in commodity derivatives carried out in a [recognised association, which is chargeable to commodities transaction tax under chapter vii of the finance act, 2013 (17 of 2013)].shall not be deemed to be a speculative transaction;" it would appear that the activities appearing in clauses (a) to (e) are not to be deemed to be speculative transactions ..... any event, the appellant having earned profit in its business of purchase and sale of shares, the tribunal should have directed the aforesaid loss in eligible transactions to be set off against such profit ?. ..... (d) an eligible transaction in respect of trading in derivatives referred to in clause [(ac)].of section 2 of the securities contracts (regulation) act, 1956 (42 of 1956) carried out in a ..... into by a dealer or investor therein to guard against loss in his holdings of stocks and shares through price fluctuations; or (c) a contract entered into by a member of a forward market or a stock exchange in the cours.of any transaction in the nature of jobbing or arbitrage to guard against loss which may arise in the ordinary cours.of his business as such member; [or]. .....
Tag this Judgment!Court : Delhi
..... proviso (d) to section 43(5) inserted with effect from 1st april, 2006 stipulates that eligible transactions should have been conducted/carried out only in recognized stock exchange, to be notified. ..... assessing officer relying upon the explanatory memorandum observed that the transactions undertaken between july, 2005 to september, 2005 were before 25th january, 2006 and, therefore, the derivative loss was not eligible under proviso (d) to section 43 (5) of the act ..... the derivative transactions between july, 2005 to september, 2005 were not eligible. ..... income tax appellate tribunal (tribunal, for short), the respondent has succeeded on the first issue and it has been observed that they were entitled to benefit under section 43(5) proviso (d), even in respect of transactions carried out with effect from 1st april, 2006. ..... with the tribunal that the delay occasioned, as procedure and formalities have to be complied with, should not disentitle and deprive an assessee, specially, when the transactions were carried through a notified stock exchange. ..... secondly, the derivative transactions were during the period july, 2005 to september, 2005 and proviso (d) to sub-section 5 to section 43 ..... the memorandum stipulated that transactions in respect of trading in derivatives in the aforesaid two stock exchanges with effect from 25th january, 2006 shall not be deemed to be speculative transactions. ..... the transactions in question it is accepted and an admitted position were conducted in the national stock .....
Tag this Judgment!Court : Delhi
..... stock exchange;] shall not be deemed to be a speculative transaction, [explanation four the purpose of this clause, the expressions ita 94/2013 page 7 (i) eligible transaction means any transaction - (a) carried out electronically on screen-based systems through a stock broker or sub-broker or such other intermediary registered under section 12 of the securities and exchange board of india ..... holdings of stocks and shares through price fluctuations; or (c) a contract entered into by a member of a forward market or a stock exchange in the course of any transaction in the nature of jobbing or arbitrage to guard against loss which may arise in the ordinary course of his business as such member (or) (d) an eligible transaction in respect of trading in derivatives referred to in clause {(ac)} of section 2 of the securities contracts (regulation) act, 1956 (42 of 1956) carried out in a recognized ..... that since the expression derivatives is defined only in section 43 (5) and since it excludes such transactions from the odium of speculative transactions, and further that since that has not been excluded from section 73, yet, the court would ..... whereby its contention about inapplicability of explanation to section 73 of the income tax act, 1961 in respect of its transactions, and the resulting relief in carry forward of its losses for the previous year, in respect of its ita .....
Tag this Judgment!Court : Mumbai
..... to guard against loss in his holdings of stocks and shares through price fluctuations; or (c) a contract entered into by a member of a forward market or a stock exchange in the course of any transaction in the nature of jobbing or arbitrage to guard against loss which may arise in the ordinary course of his business as such member; [or](d) an eligible transaction in respect of trading in derivatives referred to in clause (ac) of section 2 of the securities contracts (regulations) act, 1956 (42 of 1956) carried out in a recognised stock exchange; shall not be deemed ..... , 1956 (42 of 1956) and which fulfills such conditions as may be prescribed and notified by the central government for this purpose; " 23) plain reading of clause (d) to section 43(5) makes it clear that with effect from 1/4/2006, only those eligible transaction in derivatives referred to under section 2(ac) of 1956 act which are carried out in a recognized stock exchange shall not be deemed to be a speculative ..... we further hold that clause (d) inserted to the proviso to section 43(5) with effect from 1/4/2006 is prospective in nature and the itat was in error in holding that clause (d) to the proviso to section 43(5) applied retrospectively so as to apply to the transactions carried on by the assessee during ay 2003-04.40) for all the aforesaid reasons, we allow the appeal filed by the commissioner of income tax by answering the questions raised in the appeal in the above terms with no order as to costs. .....
Tag this Judgment!Court : Supreme Court of India
..... the appellant sought for determination of its taxable income for the assessment years 1994-1995 to 1999-2000, after considering the issues pertaining to the income assessable in respect of its leasing transaction; eligibility to avail depreciation in respect of leased assets; the quantum 4 of allowable deduction under section 80m and exemption under section 10(15) and 10(23g); and depreciation on the investments portfolio of the bank classified as permanent investments. 2.4. ..... . the commission s order further reveals that the appellant offered additional income and disclosed particulars of the income pertaining to the following transactions/activities: a) two aspects of the appellant s leasing activity, namely, undeclared lease rent liable to income tax; additional income on account of disallowance of depreciation on 26 assets claimed to be leased ..... . in view of this, we hold that the applicant is eligible to approach the commission ..... assets under section 32 of the income tax act, 1961 (hereinafter referred to as the act for the sake of convenience) though the appellant was not the owner of the assets for the purpose of the said transactions. 2.2. ..... as per the assessment order, the appellant had been accounting for lease rental received, by treating the same as a financial transaction. ..... thus, the appellant derives its income, inter alia, from banking activities as well as from leasing transactions. 2.1. .....
Tag this Judgment!Court : Supreme Court of India
..... , it was submitted that crucial elements of a tax-eligible sale transaction are: i) the existence of buyer and seller, ii) existence of an agreement between parties for transferring title of goods, iii) such transfer should be supported by monetary consideration, and iv) property in goods ..... is as to whether, in the case of such a warranty for the supply of free spare parts; once the replacement is made, and the defective part is returned to the manufacturer, sales tax would be payable on such a transaction relating to the spare part, based on a credit note, which may be issued for the said purpose. ..... aforesaid case that both under the common law and the statute law relating to sale of goods in england and in india, to constitute a transaction of sale, there should be an agreement, express or implied, relating to goods to be completed by passing of title in those goods. ..... in slp (c) no.14260 of 2007: (i) sri bagaria, learned senior counsel submitted that the nature of the transaction was not that of a sale, as the service was provided free of cost to the customer by a dealer ..... further submitted that even if the present transaction is assumed to be that of a sale between manufacturer and dealer, the same has to be treated as purchase return and not be eligible to sales tax. ..... ekram khan, the high court found all elements of sale to be completed as the transaction of supply of spare parts to consumers was concluded by the payment of valuable consideration by the manufacturer in the form .....
Tag this Judgment!Court : Karnataka
..... - (1) the commissioner may constitute an authority for clarification and advance rulings , consisting of atleast three additional commissioners, to clarify the rate of tax in respect of any goods or the exigibility to tax of any transaction or eligibility of deduction of input tax or liability of deduction of tax at source under the act, in respect of any case or class of cases as the commissioner may specify. ..... the aforesaid provision, the commissioner may constitute the authority for clarification and advance ruling consisting of atleast three additional commissioners for clarifying the rate of tax in respect of any goods or exigibility to tax of any transaction or eligibility of deduction of input tax or liability of deduction of tax at - 10 - source under the act. ..... (4) the order of the authority shall be binding, only on the applicant who seeks clarification and only in respect of the goods or transaction in relation to which a clarification is sought and also only in the proceedings before officers of the department (other than the commissioner) and the appellate tribunal, relating to such applicant. ..... (i) is already pending before any officer or authority of the department or appellate tribunal or any court; (ii) relates to a transaction or issue which is designed apparently for the avoidance of tax: provided further that no application shall be rejected under this sub-section unless an opportunity has been given to the applicant of being heard and where the .....
Tag this Judgment!Court : Karnataka
..... : s.60: clarification and advance rulings (1) the commissioner may constitute an authority for clarification and advance rulings', consisting of at least three additional commissioners, to clarify the rate of tax in respect of any goods or the eligibilityto tax of any transaction or eligibility of deduction of input tax or liability of deduction of tax at source under the act, in respect of any case or class of cases as the commissioner may specify. .....
Tag this Judgment!Court : Karnataka
..... below: s.60: clarification & advance rulings (1) the commissioner may constitute an authority for clarification and advance rulings , consisting of at least three additional commissioners, to clarify the rate of tax in respect of any goods or the exigibility to tax of any transaction or eligibility of deduction of input tax or liability of deduction of tax at source under the act, in respect of any case or class of cases as the commissioner may specify. .....
Tag this Judgment!Court : Delhi
..... (a) payment for all eligible current transactions in indian rupees or asian monetary unit (amu) or in the currency of the participating country in which the other party to the transaction is resident. ..... as regards the first, the plaintiff has conclusively proved that in export transactions pertaining to member countries of the asian clearing union including bangladesh, the foreign exchange regulations mandate that payment can only be made in indian rupees or the currency of the participating country and, therefore, not in us dollars. ..... has adduced evidence to show that as per the reserve bank of india restrictions as contained in the guidelines and foreign exchange manual placed on record and marked as a for the sake of identification, it is provided that in export transactions with member countries of the asian clearing union which includes bangladesh, payment could only be made in indian rupees or in the currency of the participating country in which the other party to the transaction is resident and, therefore, not in us dollars. ..... that similarly in transactions pertaining to foreign exchange, all banks are required to inform the reserve bank of india by submitting gr-i forms with regard to documents sent under collection or otherwise and also the fate of the documents i.e. .....
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