AMOL CAPITAL MARKETS PRIVATE LIMITED, MUMBAI V. ITO 4(1)(1), MUMBAI

MA 269/MUM/2022

AI Insights

The case revolves around a miscellaneous application filed by Amol Capital Markets Pvt. Ltd. against an earlier decision by the Income Tax Appellate Tribunal, which had dismissed their appeal based on a Supreme Court decision concerning speculative business under section 74. The assessee argued that their business, involving futures and options on a recognized stock exchange, was non-speculative and that the Supreme Court's decision did not apply to them as it pertained to a different assessment year and context. The Tribunal acknowledged the oversight in classifying the assessee's business as speculative and recalled the previous order.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124834 (ITAT-MUMBAI)
• Duration Of Justice: 8 month(s) 27 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 25-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 22-06-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 28-09-2022
• Other Referred Cases: Snowtex Investment Ltd. vs CIT [2019] 105 taxmann.com 282 (SC)
• Laws Referred To: Section 74, Section 43(5)(d)
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 43

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND SHRI SANDEEP SINGH KARHAIL, JM MA No. 269/Mum/2022 (Assessment Year: 2014-15) (Arising out of ITA 783/Mum/2019) Amol Capital Markets Pvt. Ltd. A-106, MotiliBai Wadia Bldg, 220D SA Brelvi Street Raod, Fort, Mumbai-400001 Vs. ITO 4(1)(1) Room No. 636, Aayakar Bhavan, M.K. Road, Mumbai-400020 (Appellant) (Respondent) PAN No. AADCS8022N Assessee by : Shri Rahul Hakani, AR Revenue by : Shri Aditya M Rai , DR Date of hearing: 23.06.2023 Date of pronouncement : 26.06.2023 O R D E R PER PRASHANT MAHARISHI, AM: 1. Miscellaneous application 269/Mum/2019 is filed by assessee for assessment year 2014-15 in ITA no. 783/Mum/2019 wherein the Coordinate Bench passed his order dated 17.10.2019. 2. The miscellaneous application states that the Coordinate Bench dismissed the appeal of the Assessee relying on the decision of the Hon’ble Supreme Court in the case of Snowtex investment Ltd. V.s CIT [2019] 105 taxmann.com 282 (SC)dealing with section 74 in relation to speculation business. The Claim of the assessee is that it is dealing in Future and Options in Shares at recognized stock exchange and therefore the business of the assessee is not speculative in nature. Brought forward losses in Page | 2 MA no. 269/Mum/2022 Amol Capital Markets Pvt. Ltd. case of assessee are also from non speculative business. Decision of Honourable supreme court was not relied up on or cited by the parties. Thus Considering the business of the assessee speculative in nature is mistake apparent from record and therefore the order passed by coordinate bench deserves to be recalled. 3. The ld DR submitted that there is no mistake in the order of the coordinate bench. 4. We have carefully considered rival contention and perused the orders of the coordinate bench. We find that assessee does not have any speculation business or loss. This is so because assessee has business of trading in future and option in shares on the recognized stock exchange which is out of the speculation business definition in view of provision of section 43 (5) (d) read with explanation. Therefore decision of Honourable SC in case of snowtex Investments Limited [ Supra] does not apply to it, as same was for AY 2008-09 and case of assessee is for AY 2014-15. This was also submitted that none of the party relied up on this decision. Therefore the order of the coordinate bench suffers from mistake as it read the transaction of assessee as speculative which is incorrect. Hence, we recall order in ITA no. 783/Mum/2019 dated 17.10.2019. Registry is directed to fix the appeal in due course. 5. MA filed by the assessee is allowed. Order pronounced in the open court on 26.06.2023. Sd/- Sd/- (SANDEEP SINGH KARHAIL) (PRASHANT MAHARISHI) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Mumbai, Dated: 26.06.2023 Dragon Page | 3 MA no. 269/Mum/2022 Amol Capital Markets Pvt. Ltd. Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Mumbai