TaxTMI 
TaxTMI 
TaxTMI 
2020 (8) TMI 8
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....nder the facts and circumstances of the case and in law, Ld. A.O. has erred in initiating proceedings u/s 148 and CIT(A) has erred by sustaining the same. The initiation of proceeding is illegal and unjustified. 3. Under the facts and circumstances of the case, the Ld. AO has erred by holding that the transaction with M/s Suruchi Trading is not genuine and CIT(A) has erred by sustaining the same. Finding is perverse, unjustified or illegal. The addition made is excessive, unjustified or illegal. 4. Under the facts and circumstances of the case, the Ld. AO has erred in making addition of Rs. 11,671/- by alleging that commission was paid for acquiring bogus profit and CIT(A) has erred by sustaining the same. The addition made is excessi....
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....ngible material to form the belief that income assessable to tax on account of profit on speculative transactions on the commodities exchange has escaped assessment. He has appointed that the Assessing Officer has referred to the information received from the Investigation Wing, Ahmedabad and that too under Section 133A of the Act at the premises of NMCE wherein certain brokers/persons were found to be indulged in providing bogus accommodation entries of speculative profit and loss to the parties as per their need. The ld. AR has further submitted that the Assessing Officer has reopened the assessee on the borrowed satisfaction as the information received from the Principal Director of income tax Investigation Wing, Ahmedabad is the basis o....
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...., M/s Suruchi Trading and M/s Pioneer Trading however, the AO has linked the alleged broker M/s Priyank Commodities, M/s Suruchi Trading and M/s Pioneer Trading as counter party brokers in arranging the affairs of misusing of National Multi commodity exchange plateform. 2.1 The next contention of the ld. AR challenging the validity of reopening is that approval granted by the Pr.CIT U/s 151 of the Act is mechanical and without application of mind. He has referred to the approval granted by Pr. CIT as placed at page 5 of the paper book and submitted that the Pr.CIT has just written as yes and sign below that which show that there is no application of mind by the Pr.CIT while granting approval for reopening of the assessment and reasons reco....
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....sactions being bogus commodity entries speculative profit. Therefore, at the time of reopening of the assessment what is require is the formation of belief based on the prima facie reasons that the income assessable to tax has escaped assessment. The ld. DR has further submitted that the assessee has not bothered to appear before the ld. CIT(A) and the appeal was dismissed ex-parte impugned order when there was no attendance despite various opportunities were granted by the ld. CIT(A). Thus, the assessee cannot agitate his issue without raising the same before the ld. CIT(A). The assessee has not even appeared before the ld. CIT(A) hence, the ld. DR submitted that the objection raised by the assessee against the reopening of the assessment ....
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.... income from other source and denied the benefit of setting off against speculative loss. 4. We have considered the rival submissions as well as relevant material on record. The assessee has challenged the validity of reopening of the assessment and ld. AR of the assessee has argued on the issue at length. At the outset, we note that the appeal of the assessee was dismissed by the ld. CIT(A) when nobody has attended despite several opportunities were given by the ld. CIT(A). The ld. AR of the assessee has submitted that this being a legal issue can be raised at any stage however, that would not mean that the assessee has got right to bypass the first appellate authority deliberately and then raise the issue before the Tribunal. Once, the a....
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....proforma proposal send by the AO for approval contains all the details as well as the reasons recorded by the AO which were also examined by the JCIT and recommended the proposal of the AO for issuing notice U/s 148 of the Act and thereafter the Ld. Pr.CIT has granted the approval. Therefore, we do not find any infirmity on the face of it however, the ld. CIT(A) has not decided this issue on merits and dismissed the appeal of the assessee summarily in para 3.1 to 3.3 as under:- "In this case, notices u/s 250 was issued to the appellant by fixing the hearing on 04-12-2018, 22-01-2019, 25-01-2019 & 22-02-2019. No one attended. Opportunity of being heard is central to any adjudication process but that does not absolve the appellant from non ....