ACIT, Central Circle-3, Surat V. Antrix Diamond Exports Pvt. Ltd, Mumbai

ITA 45/SRT/2022

AI Insights

The case involves two appeals by the revenue against M/s Antrix Diamond Exports P Ltd., concerning the classification of certain transactions as speculative or wagering transactions under the relevant tax laws. The assessing officer had initially treated these transactions as speculative, which would affect the tax liabilities of the assessee. However, the tribunal, referencing decisions from the Calcutta and Bombay High Courts, found that the transactions did not qualify as speculative because there was no evidence that the assessee intended not to take delivery of the goods at the time of the contracts. Consequently, both appeals were dismissed based on the principle of consistency, following the dismissal of a similar appeal for a different assessment year.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 128901 (ITAT-SURAT)
• Duration Of Justice: 1 year(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 09-02-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 23-02-2022
• Other Referred Cases: CIT Vs Soorajmull Nagarmull, CIT Vs Badridass Gauridu Private Limited
• Laws Referred To: CIT Vs Soorajmull Nagarmull, CIT Vs Badridass Gauridu Private Limited
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Rule of consistency

Judgement Text

ITA 45 & 46/Srt/2022 ACIT Vs M/s Antrix Diamond Exports P Ltd. 17 contracts with sufficient reasons. The assessing officer nowhere recorded that the intention of the assessee at the time of the original contract was not to give or take delivery of the goods in order to make it a speculative/wagering transaction, which is one of the primary condition to treat the transaction as ‘speculative transaction’. 14. Moreover, the issue is directly covered by the decision of Calcutta High Court in CIT Vs Soorajmull Nagarmull (supra) and Bombay High Court in CIT Vs Badridass Gauridu Private Limited (supra). In the result, the all the grounds of appeal, which are interconnected, raised by the assessee are dismissed. In the result, this appeal of revenue is dismissed. 15. Now we take appeal in ITA No. 46/Srt/2022 for the A.Y. 2014-15 wherein the revenue has raised similar grounds of appeal as raised in appeal in ITA No. 45/Srt/2022 for A.Y. 2013-14, except variation of amount of disallowance/addition. Considering the fact that we have dismissed the appeal of revenue in ITA No. 45/Srt/2022 for A.Y. 2013- 14, therefore, considering the principle of consistency, appeal of ITA No. 46/Srt/2022 for the A.Y. 2014-15 are also dismissed with similar findings. 16. In the result, both these appeals of the revenue are dismissed. Order pronounced in the open court on 27 th February, 2023. Sd/- Sd/- (Dr. ARJUN LAL SAINI) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Surat, Dated: 27/02/2023 *Ranjan ITA 45 & 46/Srt/2022 ACIT Vs M/s Antrix Diamond Exports P Ltd. 18 Copy to: 1. Assessee 2. Revenue 3. CIT(A) 4. CIT 5. DR 6. Guard File By order Sr. Private Secretary, ITAT, Surat s