Assessing Officer\u00a0 held\u00a0 transaction of buying and selling edible oil via high sea sales, assessee did not physically receive oil at port of delivery in India\u00a0\u00a0 hence treated as speculative. The AO\u00a0 disallowed set-off of loss against interest income, claiming it was not permissible under Section 73(1). CIT(A) allowed the claim of the assessee. On appeal the\u00a0 Revenue contended\u00a0 that in transaction of buying and selling edible oil via high sea sales, assessee did not physically receive oil at port of delivery in India. Instead, ultimate purchaser took delivery and paid customs duty. Consequently, revenue argued that this transaction fell under speculative transaction as per provisions of Section 43(5). Tribunal held that\u00a0 goods were purchased by importer from a foreign seller and loaded onto a ship. Assessee then bought goods while in transit on high seas and sold them by transferring title documents, including sale invoice and High Seas sales agreement, to ultimate buyer and buyer took physical delivery at port in India, complying with all customs formalities.\u00a0 Therefore\u00a0 it could be said that ultimate settlement of transactions entered into by assessee took place by actual delivery of goods to ultimate buyer and thus transactions of sale and purchase in instant case did not fall within provisions of section 43(5) and were not speculative transactions. Order of the CIT(A) is affirmed.\u00a0 (AY. 2015-16)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 43(5) : Speculative transaction-High sea sales-Buying and selling edible oil-Final and physical delivery of goods had been taken by end user at port of destination after compliance with all customs formalities-Set off against interest income-Transactions cannot be termed as speculative transaction. [S.73(1)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-49779","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-cWT","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49779","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=49779"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49779\/revisions"}],"predecessor-version":[{"id":49780,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49779\/revisions\/49780"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=49779"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=49779"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=49779"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}