2010 (2) TMI 1213

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..... and ₹ 10,95,62,134 on transactions not backed by delivery on the basis that the transactions are not genuine in nature. The appellant contended that on the facts and in the circu8mtances of the case and in law, the CIT(A) ought to have confirmed the disallowance of losses arisen on transactions carried out in the pursuit of business. The reasons given by the CIT(A) are erroneous, baseless, unrelated and unconnected to the facts of the case. 2. The CIT(A) erred in confirming the disallowance of a sum of ₹ 4,741 under section 36(1)(va) and ₹ 9,122 under section 43B being payments to Provident Fund on the basis that there has been delay in depositing the said sums within the specified due dates. The appellant .....

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..... of the assessee in the block assessment and on the contrary the trading activity has been accepted in the aforesaid assessment and also in the past. Further it was also submitted that majority of the speculative transactions are not with the sister concerns. He referred to the statement showing analysis of trades executed on exchanges and principle to principle trade during the relevant period and submitted that 99.28% of the trade transactions have been executed on exchange and on the transactions with associate concerns there was no loss but profit. He countered all the arguments of the A.O. and submitted that the assessee has produced bank statements in original during the course of assessment proceedings and they have submitted all pri .....

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..... s claimed pertains to valuation of stock at cost or net realisable value and accordingly the grounds of the assessee were allowed. In view of this finding of fact in another group concern, we are of the opinion that the A.O. should examine the nature of the transaction undertaken by the assessee without getting affected/persuaded by the observations of the SEBI and JPC, unless they are applicable to the facts in assessee case. It is also brought to our notice that there was special audit conducted of assessee s transactions and the report was not placed on record. The A.O. is directed to consider the issues afresh in the light of the facts on record and needless to say that the assessee should be given opportunity before deciding the issues .....

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