TaxTMI 
TaxTMI 
2018 (4) TMI 425
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....khs b) Not allowing claim of trading loss : Rs. 468.35 lakhs c) Loss on trading of shares disallowed : Rs. 377.74 lakhs d) Loss on futures and options disallowed : Rs. 115.18 lakhs 2. Facts relating to the case are discussed in brief. The assessee is engaged in the business of share trading through its proprietary concerns named M/s. S.V. Sardesai and M/s. Gifts & Novelties Impex. During the year under consideration, the assessee declared loss of Rs. 45.23 lakhs in the original return of income, which was revised to a loss of Rs. 422.98 lakhs in the revised return of income. The Assessing Officer completed the assessment by making additions listed above, which were also confirmed by the learned CIT(A). 3. Ag....
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....itted that these portfolio investors were introduced by a person named Mr. Jalal Batra and hence the assessee did not have direct contact with any of the investors. Due to stock market turmoil, price of all the shares purchased under the arrangement with Mr. Jalal Batra fall steeply and hence the assessee was constrained to incur a huge loss. Thereafter, the assessee could not establish contact with Mr. Jalal Batra or any of its associates. Hence, the assessee squared up the above said loan by transferring a portion of loss incurred by him, which was equivalent to the amount of loan. However, assessee could not furnish any evidence/material to support the above said explanations. Hence, the learned CIT(A) confirmed the addition made u/s. 68....
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.... view of the above, we are of the view that the tax authorities are justified in assessing the amount of Rs. 468.35 lakhs as unexplained cash credit. We notice that the assessing officer has assessed the same separately without specifying any head of income. In our view, the same may be assessed as income from other sources and the provisions of the Act may be applied accordingly. 10. The next issue relates to the claim for deduction of loss on trading of shares that was transferred to the account of portfolio loan creditors. Admittedly, the assessee has carried on the share trading transactions and incurred loss. The fact remains that the assessee could not prove the claim of receipt of funds under portfolio investment scheme and in the....
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....urred by two other persons named Mrs. J.S. Sardesai (Rs. 282.12 lakhs) and Mr. Ashok Kapoor (Rs. 95.62 lakhs). The assessee submitted that he has given advances to these two parties for undertaking trading in certain shares and ultimately they incurred loss. It was submitted that it is the assessee who has to bear loss, since he has carried out trading transaction through these two persons. The Assessing Officer did not accept the said contention of the assessee. Since loss has been incurred by two different persons, the Assessing Officer held that such loss cannot be claimed by the assessee. Accordingly, he disallowed the claim of Rs. 377.74 lakhs. The learned CIT(A) also confirmed the same. 12. We have heard the parties on this issue a....