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| The Tax Publishers2020 TaxPub(DT) 1110 (Del-Trib) INCOME TAX ACT, 1961
Section 70
Where AO treated entire transaction of commodity trading as non-genuine and bogus on allegation that assessee was provided accommodation entry from an entity (Lazara Commodities (P) Ltd), considering that AO did not make any direct enquiry with aforesaid entity and disallowed claim of loss solely on statement given by some entry provider, thus, matter was remanded for re-examination.
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Loss - Set off - Entire transaction of commodity trading was treated bogus -
Assessee was aggrieved by denial of set off of trading loss of Rs. 63,76,709 as claimed out of trading loss of Rs. 3 crores as incurred during year by assessee in commodity trading. AO treated entire transaction as non genuine and bogus. Held: AO did not make any enquiry from alleged entity (Lazara Commodities (P) Ltd,) providing accommodation entries and treated entire transaction as non genuine and bogus on strength of the statement made. While submitting financial and tax details of said entity, assessee had made a specific mention that if any direct confirmation from broker was required for the transactions done with it, AO might obtain directly from broker by using his powers under section 133(6). AO did not make any independent enquiry from Lazara Commodities (P) Ltd. and disallowed claim of loss solely on the statement given by some entry provider. Thus, matter was remanded for re-examination.
REFERRED :
FAVOUR : In assessee's favour by way of remand
A.Y. :
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