TaxTMI 
TaxTMI 
TaxTMI 
2015 (6) TMI 637
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....not to earn profit but to incur losses simply to reduce the taxable profit more specifically when no actual delivery was taken in normal course and further accepting the additional evidence for the proof of delivery without giving opportunity to the Assessing Officer contravening Rule 46A of the Income Tax Rules. 2. During hearing of this appeal, ld. DR, Shri Vijay Kumar Bora, advanced his arguments which are identical to the ground raised. On the other hand, Shri Amar Gahlot along with S. Sriram, ld. counsel for the assessee, defended the conclusion arrived at in the impugned order. 2.1. We have considered the rival submissions and perused the material available on record. Before coming to any conclusion we are reproducing hereunder the ....
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....the assessee giving the detail of quantity and value, therefore, there is no other requirement or necessity of maintaining any stock register separately. In any case nature of trading activity speculative or normal trading cannot be based on maintenance of stock register at all. If a person has purchased any item and then sold the same and at both times physical delivery is taken and given then it will not be a speculative trading irrespective of the fact whether the stock register is maintained or not. The A.O. has disputed the intention of the company and held that company wanted to incur losses but in this regard it is relevant to mention that in the earlier year similar transactions were held a normal trading activity, though for a sm....
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....oduced before the A.O. also as claimed by the assessee and no defect, whatsoever has been found in the challans by the A.O. Therefore, it is only on the basis of conjuncture and surmises that A.O. has held that the transactions were without any physical delivery, whereas, there is no evidence to suggest that there was no physical delivery. On the contrary assessee has produced challans (delivery note) and the concerned parties before the A.O. which proves that the deliveries had actually taken place. Assessee has also paid a higher VAT @ 1% of the turnover which is applicable to delivery based trading, whereas, 0.25% VAT is applicable to non-delivery based transactions. Even the transactions of purchase and sale are with different parties, ....
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.... and sale of gold. On the basis of details, submitted by the assessee, it was found by the Assessing Officer that:- 1. The transaction of purchase and sale of gold were done for the period beginning from November, 2007 to March, 2008. 2. In all, accept three transactions, the gold purchase was shown have been sold on the same day. 3. On majority of days, the gold purchase and sold was ranging between 20 to 30 Kgs. 4. The assessee consistently incurred loss in all transactions for sale of gold. 2.3. The assessee was asked to submit time-wise details of purchase and sale of gold and also the evidence with regard to rate at which the gold was sold. The assessee vide communication dated 01/11/2010 claimed that the type of transaction i....
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....ring losses in the trading of gold. The assessee claimed the trading in gold as a normal business loss whereas the Assessing Officer termed it as speculation loss by holding that the intention of the assessee was not to earn profit but to incur losses as there was no actual delivery and no stock register was maintained. The assessee filed the copy of the ledger account during assessment proceedings as well as before the ld. Commissioner of Income Tax (Appeals), which gives the complete details of stock available with the assessee. In any case, the nature of trading activity whether speculative are normal is not in dispute. We note that if a person purchases any item and then sold the same in both situations, there is a physical delivery is ....