2007 (3) TMI 813

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....unal') in ITA No. 200(ASR)/1995 in respect of the assessment years 1988-89 raising the following substantial questions of law:- i) Whether on the facts and circumstances of the case, the findings of the ITAT that profits derived by 21 different persons from trading done by them through commission agency of assessee-appellant is income of the assessee itself, are perverse, based on frivolous grounds and without any legal basis and therefore not sustainable in the eyes of law? AND If the answer to question No.(i) is in affirmative (ii) Whether the amount of Rs. 306802/- added to the income of assessee is liable to be deleted? Briefly the facts, are that for the assessment year in question, the assess....

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.... both the parties and given our thoughtful consideration to the rival submissions, perused the material and evidence placed on record as well as the orders of authorities below. The undisputed facts of the case are that the assessee claimed to have entered into these transactions on behalf of third parties. But one of the transactions was entered in the 'Sauda Bahi' and purchase and sale bills were also in the name of the assessee. No physical delivery of the goods was either given or taken. The goods were not transferred to the parties in the books of account of the assessee. The transactions of purchase and sale took place by and large, on the same date. In most of the cases assessee had not received any advance against the purcha....

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....Supra) is misplaced because in that case assessee was able to lead sufficient evidence in support of the solitary speculative transaction. In this context the High Court held that mere fact transaction was not entered in 'Sauda Bahi' would not mean that transaction was not genuine. But these are not the facts of the case as the assessee has not been able to lead any evidence in support of the contention that these transactions had been entered on behalf of others. The facts are glaring and obvious which show that these were collusive arrangements to reduce the incidence of tax by the assessee. xxx xxx xxx 6.3To sum up, the plea of the assessee that this being speculation profit, the assessee should be allowed to adjust t....