9911796707
TMI Blog2025 (1) TMI 502X X X X Extracts X X X X X X X X Extracts X X X X ..... is simply on the basis of information received from the investigation wing without any independent application of mind/ tangible material and is on the borrowed satisfaction and therefore ,bad in law. 03. The facts in brief are that the assessee is a partnership firm and has filed the return of income on 18.09.2012, declaring total income of Rs. 48,600/-, which was processed u/s 143(1) of the Act on 26.02.2013. Thereafter, the case of the assessee was reopened u/s 147 of the Act, after the ld. AO received information from DDIT, Investigation, Kolkata that assessee is a beneficiary of accommodation entries in the form of commodity profit of Rs. 20 lacs and thus, the income has escaped assessment to that extent within the meaning of Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which was claimed to have been made through Kali Commodity Pvt. Ltd. at Multi Commodity Exchange of India which according to the AO could not be proved. Accordingly, the assessee was called upon to furnish the complete details and was also directed to ensure the personal appearance of the said parties on 10.12.2019, but the assessee failed to do so. Finally, the ld. AO concluded that the assessee was unable to substantiate of his claim of profit of Rs. 84,45,684/- and accordingly, show cause notice was issued as to why the same should not be treated as income of the assessee as credit u/s 68 of the Act. The ld. AO also noted that the assessee has claimed to have made transactions in Future and Options / speculation segment at Calcutta Excha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment framed u/s 143(3) read with section 147 of the Act vide order dated 30.12.2019. 05. In the appellate proceedings, the ld. CIT (A) dismissed the appeal of the assessee vide para 1 as under:- "1. Ground no.1 objects to treating income of Rs. 8445684 as bogus entry. The assessee contends that the transaction was done through registered brokers. The AO found that the claim of the assessee of profit of Rs. 8445684 and Rs. 905925 from Kali Commodities Pvt. Ltd. and Shree Krishna Battar respectively has been found incorrect and rightly added as cash credits u/s68 and the same are non-speculative incomes. As per provisions of section 73 of the Act, any loss, computed in respect of a speculation business carried on by the assessee, shall n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from DDIT, Investigation, Kolkata. The ld. Authorized Representative, while taking us through the details furnished as regards the speculation profits and losses of the assessee which has been extracted above, contended that the amount of Rs. 20 lacs which were stated to have escaped assessment was included in the third item i.e. commodity profit from transactions done through Fort Comtrade Pvt. Ltd. which is Rs. 84,45,648.48 and it is only after Rs. 93,44,927/- set off against speculation profit, the net income was shown at Rs. 6682.12. The ld. Authorized Representative therefore, prayed that the ground on which the assessment was reopened stood offered to tax by the assessee itself in the return of income and therefore, the reopening base ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pired and department has not come up with any report of the ld. AO and therefore, this case is being disposed off on the basis of arguments of both the parties and facts available on records. 010. After hearing the rival contentions and perusing the materials available on record. We find that the case has been reopened after recording the reason to believe u/s 148(2) of the Act and after obtaining permission from the competent authority. We observe from the said reasons that the assessee has earned bogus commodity profits through Kali Commodity pvt. Ltd. amounting to Rs. 20 lacs, which according to the ld. AO were not disclosed and thus, have escaped assessment. However, on the other hand, we note that the assessee has disclosed a details ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
