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TMI Blog2019 (12) TMI 454X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee is engaged in the business of trading in jewellery and pawn broking business. The assessee has also carried on derivative trading in gold and silver commodities. During the year under consideration, the assessee's turnover in derivative transactions was Rs. 196.49 crores. The AO noticed that the assessee has started derivative trading by investing a sum of Rs. 19,07,500/- as margin money. He further noticed that the assessee has to pay margin money @ 7% of the value of transactions as per trading rules. Accordingly the AO worked out peak credit of trading activity at Rs. 6,89,37,371/-. The margin money @ 7% on the above said peak amount was worked out at Rs. 48,25,616/-. The AO worked out the shortage in the margin money as un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g any enhancement notice and without providing opportunity to the assessee. Accordingly she submitted that the action of the Ld CIT(A) is in violation of provisions of sec. 251(2) of the Act. 5. On the contrary, the Ld D.R submitted that the assessee has not supported his claim that he did not pay any margin money. He submitted that the brokers are governed by the rules governing the business of trading in derivatives, which stipulate that 7% of the amount shall be collected as margin money. This fact was brought out by the AO in the remand report submitted to Ld CIT(A). He further submitted that the authorized representative of the assessee has appeared before Ld CIT(A) and hence it is not correct to say that the assessee was not given op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - 560 002, which means that the broker of the assessee was located in Bangalore and not in a small town as claimed by the assessee. Hence, I am unable to comprehend as to why the assessee could not procure a certificate from the broker with regard to the query raised by the AO. At the same time, I notice that the AO has arrived at the margin money deposit on estimated basis. The assessing officer also did not attempt to collect the details of margin money deposit, if any, paid by the assessee by issuing notices/summons to M/s Prasiddhi Multi Commodities, referred above. 8. I also notice that the Ld CIT(A) has enhanced the addition by Rs. 19,03,141/-. While the deposit claimed to have been paid by the assessee initially, which was set off b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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