2018 (5) TMI 1803

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....income from the capital gain and other sources. The return of income for the year under consideration was filed by it on 24.07.2012 declaring a total income of Rs. 9,62,641/-. In the said return, loss of Rs. 5,17,141/- incurred in dealing in currency derivatives was claimed by the assessee. The said loss was claimed to be incurred in the transactions made by the assessee during the year under consideration on MCX Stock Exchange Ltd. through broker M/s. Marigold Vanijya Pvt. Ltd. During the course of assessment proceedings, the claim of the assessee for the said loss was examined by the A.O. and on the basis of information received by him during the course of the said examination, a letter was issued by him to the assessee on 09.02.2015 whic....

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....t is clear that there was manipulation in trading by the broker (Marigold Vanijya Pvt. Ltd) due to specific. reasons and they did not ask for money prior to. the trading or after the trading before the settlement of contract, which simply justifies the statement of Shri Sachet Saraf, recorded under oath during the course of Search & Seizure operation. 6. In order to verify the transactions, notice u/s 133(6) of the IT Act,1961 was issued to MCX Stock Exchange Ltd. The exchange has sent its reply dated 30.01.2015 which was received in this office on 02.02.2015. A soft copy of the details of transactions as sent by the exchange was forwarded to your authorised representative Mr.Mukesh Patawari through e-mail ID- [email protected] ....

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....issued by the broker and therefore loss of Rs. 517141.25 incurred should be allowed in full." The explanation offered by the assessee was not found acceptable by the A.O. According to him, there was failure on the part of the assessee to establish its claim of loss incurred in dealing in currency derivatives with documentary evidence. He noted that Shri Sachet Saraf, the Director of Marigold Vanijya Pvt. Ltd. himself had stated on oath that his company was indulging in providing loss in currency derivatives as per the requirement of the clients and such loss was not the actual loss. The A.O., therefore, held that the assessee in collusion with broker Marigold Vanijya Pvt. Ltd. had created the bogus loss of Rs. 5,17,141/- in trading in cu....

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....y the learned counsel for the assessee, there is nothing in the statement of Shri Sachit Saraf, Director of the broker company nor anything has been brought on record by the A.O. to show that the transactions entered into by the assessee company through the said broker were bogus. As matter of fact, a perusal of the order of the A.O. shows that enquiry was directly made by him from MCX Stock Exchange Ltd. by issuing the notice u/s 133(6) of the Act in order to verify the transactions entered into by the assessee through M/s. Marigold Vanijya Pvt. Ltd. and in reply to the said notice, MCX Stock Exchange Ltd. had not only confirmed the transactions but had also furnished the required information along with a CD containing details of all trans....