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COMMODITIES TRADING THROUGH MCX

25 November 2011

	TRADING IN COMMODITIES IS SPECULATIVE BUSINESS OR NORMAL BUSINESS , IF NORMAL BUSINESS THEN WHETHER TAX AUDIT U/S 44AB IS APPLICABLE OR NOT.

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Z ( ) (2965 Points)
Replied 25 November 2011

In notification No. 46/2009, dated 22-5-2009 CG notifies MCX as recognized Stock Exchange

Transactions shall not be deemed to be speculative in nature for the purpose of sec 43(5)(d)(ii)

Theres nowhere written in the notification that assesse is not required to get the tax audit in regards with S. 44 AB.

Section 43(5)(d)(ii) of the Income-tax Act, 1961 - Speculative transactions - Notified recognised stock exchange

Notification No. 46/2009, dated 22-5-2009

In exercise of the powers conferred by clause (ii) in the Explanation to clause (d) of the proviso to sub-section (5) of section 43 of the Income-tax Act, 1961 (43 of 1961), read with rule 6DDB of the Income-tax Rules, 1962, the Central Government hereby notifies MCX Stock Exchange Ltd. as a recognized stock exchange for the purpose of the said clause with effect from the date of publication of this notification in the Official Gazette.

2. MCX Stock Exchange Ltd. shall separately maintain data regarding all transactions registered in the system in which client codes have been allowed to be changed for periodical inspection by the Director-General of Income-tax (Investigation) having jurisdiction over such exchange and provide copies of the relevant information as and when required.

3. The Central Government may withdraw the recognition granted to MCX Stock Exchange Ltd. if any of the conditions specified in rule 6DDA of the Income-tax Rules, 1962, subject to which the recognition is granted, is violated.

4. This notification shall remain in force until the approval granted by the Securities and Exchange Board of India is withdrawn or expires, or this notification is rescinded by the Central Government as provided in sub-rule (5) of rule 6DDB of the Income-tax Rules, 1962.

[F. No. 142/25/2008-TPL]