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TMI Blog2018 (4) TMI 1295X X X X Extracts X X X X X X X X Extracts X X X X ..... ote, payment of STT were filed at the time of assessment proceedings. We also find that Ld. CIT(A) confirmed the order of AO on the basis of his guess-work as evident from his appellate order saying “there is a possibility that the modifications might have been made to accommodate the appellant as the broker of the appellant was a sister concern." The details furnished by the assessee in respect of transactions giving rise to the loss were exactly matching with the details furnished by the NSE. In none of the case Authorities Below have brought on record where any mismatch is found between the books of the assessee and the confirmation received from NSE. Had there been any manipulation in the impugned loss then it could have been reveale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as such deleted the addition made thereon. 4. On the other hand, the ld.DR has agreed that the issue as decided by this Tribunal in assessee s own case for the A.Y 2009-10 is similar and identical to the issue in hand. But he argued that there are some guidelines for modification and the said modifications cannot go beyond guidelines. The assessee has shown the claim of loss at the end of relevant F.Y and also adjustment the profit from other sources, which is not permissible. In support of his contention, he relied on the orders of the AO and the CIT-A. 5. Heard rival submissions and perused the material available on record. We find that the issue in hand is squarely covered in favour of assessee by the said order dt. 16-06-17 in ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of transactions claimed by assessee. However, on perusal of record. we find that the impugned transactions were carried out through banking channel and all the supporting evidence such as contract note, payment of STT were filed at the time of assessment proceedings. We also. find that Ld. CIT(A) confirmed the order of AO on the basis of his guess-work as evident from his appellate order which is reproduced below:- there is a possibility that the modifications might have been made to accommodate the appellant as the broker ofthe appellant was a sister concern. Further the Id. CIT -A has observed in his order as under:- Even though apparently it has not been established that the such modification had been done in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d code cannot justify the impugned loss as bogus. Thus, we conclude that the impugned addition has been made by the Authorities Below on the basis of surmise and conjecture which is not permissible in the eyes of law as held by the Hon'ble Supreme Court in the case of Lalchand Bhagat Ambica Ram vs. CIT Bihar and Orissa (1959) 159 ITR 289 (SC). Therefore, we hold that the impugned loss cannot be subject-matter of addition on the basis of suspicion. In this regard we also rely in the case of CIT vs. Kundan Investment Ltd. reported in 263 ITR 626 (Cal) where Hon'ble jurisdictional High Court has held:- The Tribunal had found that all relevant documents relating to contract notes, bills, the quoted price and other materials wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 486 (Cal) and CIT vs. Currency Investment Co. Ltd (2000) 158 CTR (Cal) 361: (2000) 241 ITR 494 (Cal) relied on. Respectfully following the same, we hold that the impugned loss claimed by assessee is genuine loss in the above facts and circumstances of the case and therefore eligible for deduction. Accordingly, AO is directed. This ground of assessee's appeal is allowed. 6. In view of above, we find that the CIT-A was not justified in confirming the impugned addition/disallowance of loss on account transactions in derivatives to the extent of ₹ 5,46,885/-. Accordingly, the same is liable to be deleted. The ground raised by the assessee is allowed. 7. In the result, the appeal of the assessee is allowed . Orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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