2012 (9) TMI 1179

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.... a) By invoking his jurisdiction u/s 263 and thereby set aside the assessment order u/s 143(3) dated 24.12.2010 and directing the Ld. Assessing Officer to reassess the income in the light of directions given in the order passed u/s 263. b) By not considering and allowing the claim of the assessee to set off the net business loss of Rs. 1185340/- suffered in the trading of shares / derivative in futures options u/s 43(5) of the Income Tax Act, 1961 against the other income's. 3. After hearing both the parties, we find that upon examination of assessment records, the Ld. CIT(A) noticed that the assessee had taken unsecured loans amounting to Rs. 10,45,000/- from the following parties. Name & address Amout (Rs. ) Date....

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.... 608 (P&H) CIT Vs Rajiv Agnihotri (iii) [2011] 332 ITR 167 (Del) CIT Vs Sunbeam Auto Ltd (iv) [2011] 323 ITR 206 (Bom)CIT Vs Development Credit Bank Ltd. 5. However, Ld. Commissioner after examining the submissions was not satisfied because according to him Assessing Officer had made only very casual inquiries and no documentary evidence in respect of the source in the hands of the creditors was obtained, therefore, the assessment order was erroneous. The Ld. Commissioner held that assessment order was erroneous and prejudicial to the interest of Revenue and set aside the same and directed the Assessing Officer to re-assess the income of the assessee. 6. Before us, the Ld. counsel for the assessee reiterated the subm....

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....g Officer and when he was not satisfied, the creditors were produced before him and their statements have been also recorded. In the said statements, it has been stated that creditors are basically agriculturists and are also related to the husband of the assessee. In case of Shri Pal Singh, the loan was stated to have been given in cash out of agricultural income and in case of Bharpur Singh, the loan was stated to have been given through transfer of funds from the bank account. Shri Bharpur Singh had further admitted that loan has been refunded to him through cheque. These facts clearly show that Assessing Officer has made reasonable inquires. At best, it can be said that these enquiries are not according to the standard of Ld. Commission....