9911796707
TMI Blog2016 (1) TMI 1228X X X X Extracts X X X X X X X X Extracts X X X X ..... orate observations, discussions and reasons which cannot be found fault with. - Decided in favour of assessee X X X X Extracts X X X X X X X X Extracts X X X X ..... eal in commodities, the transactions of castor were carried on through Shri Bharatkumar Ishwarlal Patel; assessee failed to submit evidence to show that these transactions were done through recognized commodity exchange; rates of castor mentioned were not supported by the rates prevailing in MCX and NCDEX; no margin money was paid in respect of the transactions; assessee submitted the PAN of Shri Bharatkumar Ishwarlal Patel, copy of its ledger account in the books of Shri Bharatkumar Ishwarlal Patel; however, these 8 entries were nothing but accommodating entries; accordingly, the loss claimed from these transactions was held to be bogus and was being disallowed. 5. During the appellate proceedings the assessee furnished evidence to contro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd that the time stamped contract notes were not submitted and documentary evidences to show that transactions were done through any recognized commodity exchange were not submitted. Since appellant has now submitted these evidences obtained after assessment order from commodity exchange, these are admitted as additional evidences. However, the transactions of speculation loss will not get proved to be genuine from these evidences, A.O. is justified in suspecting these transactions. However, additions cannot be made on mere suspicious. In view of this, A.O. is directed to examine the Broker Shri Bharatkumar Ishwarlal Patel to find out whether the commodity transactions were genuinely done or the broker has issued bills for loss only. You ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Exchange. Non-members are permitted to trade only through members. Shri Bharatkumar Ishwarlal Patel is a member of ACEL. In the statement recorded u/s 131 during the remand proceedings he confirmed that the transactions under consideration were carried out by him through ACEL. Necessary evidence in support thereof was furnished to the A.O. Margin money was not required to be paid if the transactions are settled intra-day and it is required to be paid if the transactions get carried over to the next day. As contended by the Id. A.R., MCX does not deal in castor commodity and NCDEX permitted transactions in castor on delivery basis but not speculative transactions and therefore appellant had carried out transactions in castor through ACE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ber of ACEL for which the evidence was produced which was not controvered by the Assessing Officer; (iii) Since the MCX did not deal in castor commodity and NCDEX permitted transactions in castor on delivery basis, the assessee carried the same through ACEL in which they are permissible. (iv) The ld. CIT(A) has held that, despite these two remand reports, the Assessing Officer has not been able to controvert any infirmity in the transactions carried out by ACEL member Shri Bharatkumar Ishwarlal Patel. The order of the ld. CIT(A) is relied on. 6. I have heard the rival contentions, perused the material available on record and gone through the orders of the authorities below. I find merit in the contentions of the ld. Counsel for the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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