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Showing contexts for: Intraday in Commissioner Of Income Tax-Ii vs Lalit Kumar Poddar on 14 January, 2015Matching Fragments
1. The revenue is aggrieved by the order dated 17.1.2014 of the ITAT in ITA 5400/Del/2011. It urges two questions of law :
(i) Whether the assessee's loss on account of intraday trading in shares, is truly speculative in nature and liable to be treated as such?
(ii) Whether the interest-free loans secured by the assessee to the tune of ₹1.55 crores were in the circumstances of the case liable to be added under Section 68 of the Act?
2. The assessee engages itself in trading in stocks and shares and acts as a sub-broker. It had claimed a sum of ₹66,35,210/- on account of clearing difference. In the assessment year 2007-08 it also reflected an amount of ₹1.55 crores as loans/advance obtained from various parties and entities.
5. Both the CIT (Appeal) and the ITAT took into consideration the assessee's explanation that certain intraday transactions - broadly described as "clearing differences", were held over in the sense that the delivery had to be obtained. The assessee had also apparently argued before the concerned authorities and placed a chart reflecting the transactions to support the submission that even in respect of intraday sales, consideration had passed. A look at the order of the CIT (Appeal) as well as ITAT nowhere reflect this position. Even the discussion of the assessing officer while including a sum of ₹66,35,210/- would show that the no rationale has been given as to whether in fact consideration flowed for the intraday purchases and sales effected by the assessee so as to take it out of the mischief. Having regard to these facts this Court is of the opinion that the matter should be considered afresh and express findings recorded as to whether in fact intraday purchases and sales made by the assessee were jobbing transactions and whether consideration has passed. The CIT (Appeal) shall call for a remand report in this regard and after hearing the submissions of the parties, return the findings in this regard. It is open to the parties to make all submissions in accordance with law. All other rights of the parties in this regard are ITA 659/2015 Page 3 reserved.