2015 (1) TMI 749

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....cured by the assessee to the tune of Rs. 1.55 crores were in the circumstances of the case liable to be added under Section 68 of the Act? 2. The assessee engages itself in trading in stocks and shares and acts as a sub-broker. It had claimed a sum of Rs. 66,35,210/- on account of clearing difference. In the assessment year 2007-08 it also reflected an amount of Rs. 1.55 crores as loans/advance obtained from various parties and entities. The assessing officer proceeded to treat the first amount i.e. Rs. 66.35 lakhs as a speculative loss and disallowed it on account of Section 73(1). As far as the sum of Rs. 1.55 crores was concerned the assessing officer added it back under Section 68, doubting the genuineness of the transaction. 3. So fa....

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.... exchanges and there is no requirement of physical delivery of said certificates etc. The purchase and sale is routed through demat accounts and the only way to find out the profit and loss on the purchase and sales of securities made through a broker is the account statement submitted by such broker from time to time. In the present case, the appellant has maintained all the regular books of accounts and all necessary details have been filed before the AO in the course of assessment proceedings. Therefore, in my view, the AO was not justified in holding the loss of Rs. 66.35 lacs as speculative in nature. Accordingly, he is directed to treat the loss of Rs. 66.35 lacs as normal business loss as has been done by his predecessors and success....