TaxTMI 
TaxTMI 
2015 (5) TMI 543
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....;2. The Appellant prays that it be held that the action of the lower authorities be deleted and the claim made by the Appellant in its return of income be allowed. Ground No.2: Disallowance under section 40 (a) (ia) - Rs. 8,05,864/- 1. On the facts and in the circumstances of the case and in law, the (IT (A) erred in confirming the action of the AO of disallowing Rs. 805,864/under section 40 (a) (i a) of the Act. 2. The Appellant prays that it be held that the action of the lower authorities be deleted. Ground No.3: Disallowance of repairs and maintenance expenses Rs. 4,36,848/- : 1. On the facts and in the circumstances of the case and in law, the CIT(A) erred in giving direction to the AO to allow the expenditure subject to perusal of supporting documents though the same were made available to him in the course of the appellate proceedings. 2. The Appellant prays that repairs and maintenance expenditure as claimed in the return of income be allowed to it. Ground No.4: Disallowance of short-term capital loss- Rs. 155.41.499/- 1. On the facts and in the circumstances of the case and in law, the CIT(A) erred in confirming the action of the AO of making dis....
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....ion on the National Stock Exchange. In light of the services availed by the assessee from HSSBL a compensation of Rs. 7,57,600 lakhs was paid to them. The AO disallowed the compensation paid to M/s SCG Stock & Share Brokers Ltd.(HSSBL), Rs. 757,600/- after having discussion at para 6, on the plea that consideration was paid as compensation to the sister concern and not as a broker. By stating that assessee was not able to furnish its books of account for verification, AO disallowed the same. By the impugned order, the CIT(A) confirmed the action of the AO by observing at para 3 that assessee has not produced copy of the return of income filed by sister concern (HSSBL) to ascertain as to whether the income has been offered to tax. We found that assessee has submitted its computation of total income, balance sheet for the relevant assessment year along with details of brokerage received by HCGSSL from which it is clear that the sister concern HCGSSL declared the said amount in their profit and loss account which is placed at page 511 to 533 of the paper book. Even the CIT(A) has also observed that assessee has produced the particulars of the transaction and the basis on which the com....
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....g with the log book with reference to the provisions of Section 40(a)(ia) of the I.T.Act. We do not find any infirmity in this direction of CIT(A). 8. The AO has also disallowed Rs. 1,55,41,499/- being loss on trading in derivative transactions by treating the same as bogus. The AO has dealt this issue exhaustively in para 4 of his order. The AO has recorded the statement u/s.131 of Ms. Varsha Vaidya director of the assessee company on 14-12-2010. He has also recorded the statement of Managing Director of the assessee company Mr. Arvind Bhinde on 15-12-2010 and also recorded the statement of Mr. Anil Agarwal the Proprietor of M/s Trishla Commodities, the MCX Broker through whom transactions has been entered into by the assessee. The CIT(A) has called for the remand report from the AO which is submitted by the AO on 24-01-2012. The assessee company has filed letter dated 14-2-2012 during the course of the appellate proceedings in rebuttal to the remand report of the AO. However, the CIT(A) has confirmed the disallowance of short term capital loss incurred on derivative transactions by upholding the action of the AO to the effect that the loss so incurred was bogus. 9. We have ....
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....re not through MCX means they are bogus however AO has not quoted Question No. 21 and its reply given by Mr. Arvind Bhide which is as under: "Q.21 Now I am showing you the letter dated 10.11.2010 issued by MCX, wherein it is critically stated that you were not registered as client of M/ s. Trishla Commodities in MCX and the transaction for which contract notes were issued by M/ s. Trishla Commodities have not entered in M CX Please offer your comments. Ans- I have nothing to explain. However I am surprised to see the findings of the MCX ." This reply is given by Mr. Bhide as he also came to know for the 1st time that transaction entered by the company was off market and not through MCX. He was also of the opinion that the transaction should be entered through MCX only and if it is not entered through MCX then it will be bogus. ''Q.22 It means the transaction entered into through M/s. Trishla Commodities, as claimed, are bogus? Ans- Yes, It can be said like that if MCX confirms the same. ''Q.23 Please tell whether at any instance, you have received any amount from M/s Trishla Commodities.? Ans- No, I have never received an....