TaxTMI 
TaxTMI 
2019 (11) TMI 1297
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....63 - they are descriptive and argumentative in nature. In brief, short issue involved in the present appeal is, whether the loss of Rs. 75,31,781/- claimed by the assessee on account of "Stock Loss" in trading of wheat is genuine loss ? If yes, then capital gain arose to the assessee deserves to be set off against this loss or not. 3. Brief facts of the case are that the assessee has filed her return of income on 7.10.2015 declaring total income at Rs. 25,79,460/-. The case of the assessee was selected for scrutiny assessment and notice under section 143(2) was issued and served upon the assessee. On scrutiny of the accounts, it revealed to the Assessing Officer that the assessee has income from house property at Rs. 14,55,272/-; income ....
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....i 2. M/s Singhal Traders 08/01/2014 500000 2498 2072 5175856 2498 2498 4996 500 19984 5206332 Bannoth 3 M/s Chhavi Sales Corpn 08/01/2014 500000 2490 2068 5149320 2490 2490 4980 500 19920 5179700 Badli 4 M/s Anita Industries 08/01/2014 500000 2496 2071 5169216 2496 2496 4992 500 19968 5199668 Timarpur 5 Ms Kanshi Ram Sumit Kumar 08/01/2014 500000 2475 2071 5125725 2475 2475 4950 495 19500 5155920 Alipur 6 M/s Tarn Chand Dev Kumar 08/01/2014 500000 2490 2069 5131120 2480 2480 4960 500 19840 5161380 Holambi Kalan 7 M/s Maya Ram Pa....
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.... 4153103 1008277 7 M/s Maya Rani Pawan Kumar 09/04/2014 525369 2477.6 1687.6 4181029 2485 2485 4970 510 9980 4162 4156437 1025368 Total Loss- 7531781 4. The ld.AO thereafter recorded statement of the assessee and doubted the transaction carried out by the assessee. In his opinion, it was a bogus transaction manipulated by the assessee in order to evade levy of capital gain tax. It emerges out that the assessee has sold officespace in Gurgoan for a sum of Rs. 2.00 crores which has led to a long term capital gain of Rs. 78,83,716/-. In this way, the ld.AO ....
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.... 7 of the assessment. With regard to the objection of the CIT(A) that no delivery was taken by the assessee, he relied upon the judgment of Hon'ble Rajasthan High Court in the case of CIT Vs. Aditya Mills Ltd., 209 ITR 933 wherein Hon'ble High Court has held that if the actual delivery of goods is given to the agent, then it is to be construed that goods were remained with the agents, who acted on behalf of the assessee. It is not necessary that actual delivery is taken by the assessee himself. "Pakka Arhtias" has taken delivery of wheat stored in their godowns, and charged godown rent. This indicates that actual delivery has been taken by the assessee. 7. The ld.DR,on the other hand, relied upon the orders of the Revenue authorities, an....
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....urchased. He simply put a doubt on the basis of circumstances. First suspicion is that incidence of long term capital gain occurred to the assessee on 21.7.2014, and thereafter, the assessee has booked purchase of wheat, its infestation and sale. The infestation has happened in all these seven godowns. This was not acceptable to the Assessing Officer. To our mind, it is one of strong circumstance and corroborative factors to disbelieve the claim of the assessee, but it is a just suspicion and it should have been cross-verified by the Assessing Officer before disbelieving it. He ought to have alteast issued summons to these entities and to verify whether this activity was actually undertaken by the assessee or not. Suspicion however may be s....