2019 (7) TMI 377

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....ct, 1961. 2. That both the lower authorities have erred in law as well as in facts of the case in considering cash deposit into bank account as unexplained and thereby made addition/sustained addition of Rs. 20,90,070/- to the returned income. 3. That ld. CIT(A) has erred in law as well as in facts of the case in not affording sufficient opportunity of being heard, hence violated principle of natural justice." 2. Briefly the facts of the case are that the assessee is engaged in the business of trading of commodity derivatives on MCX and NCDEX stock exchanges. The Assessing officer, on receipt of certain information, noticed that the assessee has carried out commodity transactions worth Rs. 7,33,80,90,800/- during the fi....

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....ion of belief by the AO that income from commodity derivative has escaped assessment. However, on perusal of the assessment order, it may be noted that no addition was made by the AO on account of commodity derivative transactions and the addition which has been made by the AO is on altogether different ground i.e. unexplained cash deposit into the assessee's bank account. It was submitted that it is a settled legal position that where the alleged income in respect of which the reasons were recorded were not brought to tax by the Assessing Officer, no addition on account of any other transactions can be made and the jurisdiction of the Assessing Officer comes to an end and even the rigors of explanation no. 3 to Section 147 of the Act canno....

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....uested that necessary approval may kindly be accorded." 6. Further, on perusal of the assessment order passed by the AO U/s 143(3) r.w.s. 147 of the Act, the relevant finding of the AO in relation to the commodity transaction carried out by the assessee during the year under consideration reads as under:- "5. In response thereto, the assessee has filed details of commodity trading and shown gross sales of Rs. 9,12,54,31,410/, gross purchase of Rs. 9,12,75,14,617/- and declared net loss of Rs. 20,83,206/-. On perusal of details, it is found that assessee has made net sales/turnover of commodity of Rs. 1,28,02,922/- ( 11449211-1353711) and earned loss of (-) Rs. 20,83,207/-. 6. Assessee is not allowed to carry forward the....