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TMI Blog2018 (5) TMI 1803X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee on account of brokerage, service tax and other charges was duly supported by the documentary evidence in the form of relevant bills issued by the broker and there was no reason whatsoever given by the A.O. for not accepting this explanation of the assessee - the genuineness of the transactions made by the assessee on MCX Stock Exchange Ltd. through broker Marigold Vanijya Pvt. Ltd. was duly established and the action of the authorities below in disallowing the claim of the assessee for the resultant loss in dealing in currency derivatives is not tenable. Delete the said disallowance and allow the appeal of the assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... by DDIT(Inv.), Kolkata on 22.03.2013 . During the course of search operation statement of Shri Sachet Saraf, Director of Marigold Vanijya Pvt. Ltd. was recorded u/s 132(4) of the IT Act, 1961. In the said statement recorded under oath, Shri Saraf categorically statement that he has provided profit/loss in currency derivative through Marigold Vanijya Pvt. Ltd. as per the requirement of the clients. These are not the actual profit/losses. In reply to another question he stated that the difference amount the case of loss entries was received by him through cheque and he returned the cash after deducting his commission to those persons who have taken loss. 4. Verification of records also reveals that you have not given any money to the broke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 5,17,141/- from trading in exchange. 3. In reply to the letter of the A.O., the following explanation was offered by the assessee: "Total sales figure of ₹ 151922392.00 and total buy figure of ₹ 151923880.00 derived by you on the basis of information provided by MCX Stock Exchange Limited in pursuance to notice u/s 133(6) issued by you is exactly matching with the amounts as disclosed in the evidence submitted by us in support of our claim for loss of ₹ 517141.00 incurred in currency derivatives through Marigold Vanijya Private Limited. YoV will notice from perusal of details of transactions that MCX Stock Exchange Ltd ties only reported buy & sell amount exclusive of charges levied by the broker as available w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts of both the sides and also perused the relevant material on record. It is observed that the claim of the assessee for the impugned loss incurred in trading in derivatives was disallowed by the authorities below mainly on the ground that the assessee had not given any margin money to the broker before the relevant transactions and in his statement, the Director of the broker company had admitted that his company was indulging in providing bogus loss in currency derivatives as per the requirement of the clients. At the time of hearing before the Tribunal, the learned DR has laid emphasis on these two aspects in support of the revenue's case. However, as contended by the learned counsel for the assessee by relying on the decision of Hon'bl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce confirming the genuineness of the transactions made by the assessee on MCX Stock Exchange Ltd. was brushed aside by the A.O. on the ground that loss shown therein was ₹ 1,488/- whereas the assessee had claimed a loss of ₹ 5,17,141/-. As submitted on behalf of the assessee before the Assessing Officer as well as before us, expenditure was incurred by the assessee relating to the said transactions on account of brokerage, service tax and other charges levied by the broker aggregating to ₹ 5,15,653/- and accordingly the total loss as claimed by the assessee was to the tune of ₹ 5,17,141/-. As pointed out by the learned counsel for the assessee, this additional expenditure incurred by the assessee on account of broke ..... X X X X Extracts X X X X X X X X Extracts X X X X
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