TaxTMI 
TaxTMI 
1981 (7) TMI 128
X X X X Extracts X X X X
X X X X Extracts X X X X
....f Rs. 21,500. The assessee manufactures groundnut oil and also in oil, oil cakes etc. The assessee had entered into an agreement for the purchases of 43 tons of oil cakes with Smt. Usha A. Agarwal of Bombay on 18th Oct., 1973. A similar agreement for the purchase of 43 tons of oil cakes was entered into with Shri Suresh K. Agarwal on 23rd Oct., 1973. The contracts were settled on 20th Oct., and 24....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... as the income returned was not less than 80% of the assessed income, there was no fraud or wilful negligence on the part of the assessee and thus no penalty could be levied. The ITO did not accept these arguments. He observed that "it was not proved at any stage that the amount of Rs. 21,500 did not represent the loss incurred in the course of speculation transaction and further by not disclosing....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ring the course of scrutiny of the balance-sheet. As the losses were definitely speculation losses, the assessee was bound to have shown these facts separately in the trading or profit and loss account. As it had not done, penalty was exiginble. He, accordingly, confirmed the levy of penalty. 3. Before us, the ld. Counsel for the assessee stated there was no attempt on the part of the assessee ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....in the light of the law as it existed on the date of the filing of the return. The Supreme Court had held that profit or loss arising in such transaction was no speculation profit or loss in the case of Rahunath Prasad Poddar (1973) 90 ITR 140 (SC) delivered on 25th April, 1973. This finding was reversed by the Supreme Court in the case of Davonport & Co. P. Ltd. 1975 CTR (SC) 235 : (1975) 100 ITR....