The Commissioner Of Income Tax – 15, Mumbai v. M/S.e-Cap Partners, Mumbai – 21

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.3772 OF 2009 The Commissioner of Income Tax – 15, Mumbai..Appellant. Versus M/s.E-CAP Partners, Mumbai – 21..Respondent. Mr.A.S. Shivsharan for the appellant.None for the respondent. CORAM : J.P. Devadhar & Smt.R.S. Dalvi, JJ. P.C. : DATE : 18[th] April, 2011. 1.This appeal was admitted on 16-11-2010 on the following substantial question of law. “Whether the ITAT was correct in law in holding that transactions in respect of ‘Trading in Derivatives’ are not ‘speculative transactions’ as contemplated u/s.43(5) ignoring the fact that the ‘Derivative transactions’ were excluded from the fold of ‘Speculative Transactions’ only from A.Y. 2006-07 inserted by the Finance Act 2005, which is not applicable in the case of assessee, being the relevant assessment year as 2004-05 and the said amendment is not retrospective in application ?” 2.None for the respondent, though served. The aforesaid question is answered in favour of the Revenue and against the assessee by the decision of this Court in the case of The Commissioner of Income Tax, Central – IV, Mumbai V/s. Shri Bharat R. Ruia (HUF), being Income Tax Appeal No.1539 of 2010 decided on 18-04-2011. 3.In this view of the matter, the appeal is allowed by answering the question in favour of the Revenue and against the assessee. (Smt.R.S. Dalvi, J.) (J.P. Devadhar, J.)