COMMISSIONER OF INCOME TAX Vs. BHARAT R RUIA

JUDGEMENT

(1.) This appeal was admitted on 21/12/2010 on one question of law, which at the hearing of the appeal, by consent, is reframed into two questions, as follows :-

(2.) The respondent-assessee is an HUF engaged in the business of trading in shares and securities, etc.

(3.) In the assessment year 2003-04, the assessee had entered into certain transactions in exchange traded derivatives ('derivative transactions' for short) which resulted in loss amounting to Rs. 28,37,707/-. The assessee claimed the above loss as business loss. In the assessment order passed under Section 143(3) of the Income Tax Act, 1961 ('IT Act' for short) the assessing officer rejected the contention of the assessee and held that the loss incurred was speculation loss covered under Section 43(5) of the Act. The appeal filed by the assessee against the order of the assessing officer was dismissed by C.I.T. (A).