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TMI Blog2019 (6) TMI 1250X X X X Extracts X X X X X X X X Extracts X X X X ..... is true that it has been disclosed under head income from other source but according to Section 71(1) of the Act assessee is entitled to set off this commodity trading from income under the head Business profession and income from other sources. We accordingly direct the revenue authorities to allow the assessee s claim of commodity trading loss by way of set off to the extent of income under other heads for the year under appeal. Certainly assessee will be allowed to carry forward the loss to the subsequent years. Addition u/s 68 regarding opening cash balance - source of opening cash balance - HELD THAT:- Assessee has not provided any details in the shape of balance sheet or statement of affairs for the immediate preceding Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. That the Ld. CIT(A) has erred in confirming the addition of ₹ 17,92,999/- under the head opening cash balance which is wrong and bad in law and is liable to be deleted. That the appellant craves add, alter and/or any grounds of appeal setout above 3. Briefly stated facts as culled out from the records are that the assessee is an individual and filed his return of income on 21.3.2016 declaring loss of ₹ 13,86,223/-. Case selected for scrutiny through CASS followed by serving of notices u/s 143(2) and 142(1) of the Act. During the course of assessment proceedings Ld. A.O after going through the submission made by the assessee was not satisfied with set off of loss of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uting the income assessee has set off of the loss from the commodity exchange from online trading at ₹ 19,93,449/- shown by the assessee under the head income from other sources and was set off against the profits and gains of business u/s 44AD of the Act at ₹ 3,07,229/- and commission income of ₹ 3,00,000/- shown under the head income from other source. The net loss of ₹ 13,86,223/- was carry forward. 10. Ld. A.O disallowed the claim of set off of loss firstly observing that the assessee had filed belated return on 21.3.2016 and secondly he failed to get its account audited u/s 44AB of the Act as the turnover shown by the assessee from commodity trading was at ₹ 22,82,80,930/- . When the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... attracts penalty under other provisions of the Act which were open to the Revenue authorities to initiate as and where required. However in the instant case no question has been raised for the genuineness of the trading loss. It is true that it has been disclosed under head income from other source but according to Section 71(1) of the Act assessee is entitled to set off this commodity trading from income under the head Business profession and income from other sources. 12. We therefore in the given facts and circumstances of the case are of the considered opinion that finding of Ld. CIT(A) of confirming the disallowance of commodity trading loss of ₹ 19,93,449/- deserves to be set aside. We accordingly direct the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment order as well as submission of the appellant in this regard. 4.1 During the course of assessment proceedings, as per AIR information, the appellant had deposited cash in his saving bank a/c at ₹ 1736130/-. The appellant was asked by the AO to explain the source of cash deposited in the bank accounts. In reply to the said query, the appellant ad submitted profit loss statement in the required format, cash flow statement before the AO. On perusal of the cash flow statement, it was observed by the AO that the appellant had shown opening balance of ₹ 1792999 and the appellant not submitted any evidence for the said opening balance. 4.2 During the course of appellate proceedings, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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