India - Income Tax Act 2010 - Saarc

1.273 CH. IV - COMPUTATION OF BUSINESS INCOME S. 43jobbing or arbitrage to guard against loss which may arise in theordinary course of his business as such member; 89 [or]89[(d) an eligible transaction in respect of trading in derivatives referredto in clause 90 [(ac)] of section 2 91 of the Securities Contracts(Regulation) Act, 1956 (42 of 1956) carried out in a recognisedstock exchange;]shall not be deemed to be a speculative transaction.92[Explanation.—For the purposes of this clause, the expressions—(i) “eligible transaction” means any transaction,—(A) carried out electronically on screen-based systems through astock broker or sub-broker or such other intermediary registeredunder section 12 of the Securities and ExchangeBoard of India Act, 1992 (15 of 1992) in accordance with theprovisions of the Securities Contracts (Regulation) Act, 1956(42 of 1956) or the Securities and Exchange Board of IndiaAct, 1992 (15 of 1992) or the Depositories Act, 1996 (22 of1996) and the rules, regulations or bye-laws made or directionsissued under those Acts or by banks or mutual funds ona recognised stock exchange; and(B) which is supported by a time stamped contract note issued bysuch stock broker or sub-broker or such other intermediaryto every client indicating in the contract note the uniqueclient identity number allotted under any Act referred to insub-clause (A) and permanent account number allottedunder this Act;(ii) “recognised stock exchange” means a recognised stock exchangeas referred to in clause (f) of section 2 93 of the Securities Contracts(Regulation) Act, 1956 (42 of 1956) and which fulfils suchconditions as may be prescribed and notified 94 by the CentralGovernment for this purpose;]95(6) “written down value” means—(a) in the case of assets acquired in the previous year, the actual costto the assessee;(b) in the case of assets acquired before the previous year, the actualcost to the assessee less all depreciation actually allowed 96 to himunder this Act, or under the Indian Income-tax Act, 1922 (11 of89. Inserted by the Finance Act, 2005, w.e.f. 1-4-2006.90. Substituted for “(aa)” by the Finance Act, 2006, w.e.f. 1-4-2006.91. For text of section 2(ac) of the Securities Contracts (Regulation) Act, 1956, see Appendix.92. Inserted by the Finance Act, 2005, w.e.f. 1-4-2006.93. For text of section 2(f) of the Securities Contracts (Regulation) Act, 1956, see Appendix.94. See rules 6DDA and 6DDB. Recognised Stock Exchanges are : NSE/Bombay StockExchange - SO 89(E), dated 25-1-2006/MCX Stock Exchange - SO 1327(E), dated22-5-2009.95. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.96. For the meaning of the expression “actually allowed”, see Taxmann’s Direct Taxes Manual,Vol. 3.