2015 (7) TMI 1315

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....e case and in law reopening of assessment U/s.148 being based on wrong premises that business in Guar Seeds is of speculative nature done through Multi Commodity Exchange (MCX) is bad in law and be set aside.  The appellant submits that business is in Guar Seeds is not done through MCX but it is a trading business of purchase and sale of Guar Seeds from different parties as examined by ACIT Cir.10, Ahmedabad as per his remand report dt.05.01.2012 sent to CIT(A)XVI, Ahmedabad. (2) The A.O./CIT(A) have not considered the fact that complete details of purchases/sales of Guar Seeds were filed at Page No.31 and 37 out of 151 Pages filed in original assessment proceedings U/s.143(3) and duly accepted that it is a trading business.&n....

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....s filed before this Tribunal.  The ld.counsel for the assessee submitted that the AO was not justified in reopening the assessment.   He submitted that the reasons for reopening the assessment are contrary to the records.  The ld.counsel for the assessee drew our attention towards reasons recorded by the AO for re-opening the assessment.  He submitted that the AO treated the transaction of Guar seeds as transaction in Future and Option (F&O).  The contention of the AO was that the loss incurred in the trading of commodities F& O, Crude Oil  F&O, Gold F&O, Silver F&O and Guar Futures are speculative in nature, the loss arising therefrom is also speculative loss  in terms  of provisions of Section ....

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....e contrary, ld.Sr.DR supported the orders of the authorities below and submitted that there is no infirmity in the orders of the authorities below.  He submitted that it is correct that in the accounts the assessee has not shown the transaction in Gaur Seeds as F&O.  Further, the assessee failed to furnish the evidence with regard to the transportation of the Gaur Seeds and storage of the same.  Under these facts, the AO was justified in reopening the assessment.     4. We have heard the rival submissions, perused the material available on record and gone through the orders of the authorities below.  We find that the AO has reopened the assessment on the ground that on verification of the audited Profit....

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....XURE-C:  QUANTITATIVE DETAILS:   QUANTITATIVE DETAILS OF PRINCIPAL ITEMS OF GOODS TRADED ITEM OPENING STOCK PURCHASES SALES CLOSING STOCK CRUDE FUTURE 0 600 600 0 FUTURE & OPTION SHARES  0 98700 98700 0 GUAR GUNI 0 1700 1100 600 GOLD FUTURE 0 237100 237100 0 GUAR FUTURE 0 13100  13100 0 EQUITY SHARES - FOR LONG TERM GAIN   3102    112  0  3214 EQUITY SHRES - FOR SHORT TERM GAIN  170  143856 141912 2114 SILVER FUTURE 0 28770 28770 0 TOTAL 3272 523938 521282 5928 4.1. There is no whisper in the assessment order passed u/s.143....