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TMI Blog2018 (3) TMI 1883X X X X Extracts X X X X X X X X Extracts X X X X ..... the addition only on the basis of statement recorded during the search seizure operation in the premises of the said Shri Sachet Saraf, director of M/s. Marigold Vanijya P.Ltd. The said statement of Mr. Saraf was retracted at a later point of time. CIT-A found satisfied that there was no corroborative evidence which supports the view of the AO that the said transaction was unexplained. No additional evidence, which was filed before the CIT-A, but not before the AO. CIT-A deleted the said addition only on the basis of material/evidence available on record, which were very much before the AO in the re-assessment proceedings. The case laws as relied on by the assessee before the CIT-A were relevant and applicable to the present facts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act on 28-01-2012. 5. A search seizure operation was conducted in the office of Sachet Saraf Others u/s. 132 of the Act on 22-03-2013, wherein a statement of Shri Sachet Saraf, director of M/s. Marigold Vanijya P.Ltd was taken. He stated that M/s. Marigold Vanijya P.Ltd is a broker of currency derivatives listed with MCX Stock Exchange. A notice u/s. 148 of the Act was issued the assessee. In response, the assessee requested to treat the return originally filed on 08-08-11, as a return filed in response to notice issued u/s. 148 of the Act. The AO further issued notices u/s. 143(2) and 142(1) of the Act and in response to which, the AR of the assessee appeared. For verification of transaction notice u/s. 133(6) of the Act was issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... araf, director of M/s. Marigold Vanijya Pvt. Ltd admitting that all the foreign currency transactions done by assessee are boanfide, genuine and recorded by said MCX Stock Exchange Referring to the statement given by Shri Sachet Saraf during the course of search seizure operation, it was submitted that there no direct connection with the assessee. 7. The CIT-A considering the above submissions of assessee was satisfied that the assessee submitted all the required details in support of its transaction/claim. The CIT-A held that the AO did not place on record any cogent and factual or palpable material/evidence in support of his view and therefore, deleted the said addition made by the AO by observing as under:- 4.2 I have considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itions cannot be made, based merely on the statement of a third party, in the absence of any corroborative material evidence. There must be cogent and palpable material evidence material evidences on record for any justifiable action in the matter. I find that the AO has not done justice in the matter in this respect for which the impugned addition cannot stand the test of appeal. I find that the appellant has discharged its initial onus by furnishing all the requisite details in respect of foreign exchange loss incurred by it. It is not the case of the AO that the appellant has failed to furnish documentary evidences in support of the said foreign currency loss. Thus, considering the entire facts and circumstances of the issue at hand in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that there was no new submission/evidence before the CIT-A as allegedly argued by the ld.DR. The CIT-A only considered those details which were available before the AO. In response to notices issued u/s. 143(2) and 142(1) of the Act, the assessee produced all the details before the AO in support of the contention and claim. In response to notice issued u/s. 133(6) of the Act, said MCX Stock Exchange, Mumbai provided all the details regarding the said transactions. The AO after examining the same, has high handedly held that the claim of assessee is bogus and therefore, added the impugned amount, which is not at all justified. The ld.AR of the assessee supported the order of the CIT-A and prayed to dismiss the grounds raised by the revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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