2018 (5) TMI 2024

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....e for the year under consideration was filed by him on 26.07.2012 declaring a total income of Rs. 22,11,320/-. In the said return, loss of Rs. 13,10,688/- incurred in dealing in currency derivatives was claimed by the assessee. The said loss was claimed to be incurred in the transactions made by the assessee during the year under consideration on MCX Stock Exchange Ltd. through broker M/s. Marigold Vanijya Pvt. Ltd. During the course of assessment proceedings, the claim of the assessee for the said loss was examined by the A.O. In this regard he received information from DIT(Inv.), Kolkata that M/s. Marigold Vanijya Pvt. Ltd. was providing bogus loss in dealing in currency derivative as per the requirements of clients. He accordingly issued....

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....o establish its claim of loss incurred in dealing in currency derivatives with documentary evidence. He noted that Shri Sachet Saraf, the Director of Marigold Vanijya Pvt. Ltd. himself had stated on oath that his company was indulging in providing loss in currency derivatives as per the requirement of the clients and such loss was not the actual loss. The A.O., therefore, held that the assessee in collusion with broker Marigold Vanijya Pvt. Ltd. had created the bogus loss of Rs. 13,10,688/- in trading in currency derivatives and accordingly the same was disallowed by him in the assessment completed under section 143(3) vide an order dated 13.03.2015. On appeal, the Ld. CIT(A) confirmed the said disallowance made by the A.O. Aggrieved by the....

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.... through broker Marigold Vanijya Pvt. Ltd. As found by the A.O. on verification of the said details, total transactions involving sales of Rs. 33,81,68,663/- and purchases of Rs. 33,81,66,145/- were made by the assessee resulting into a profit of Rs. 2,517/-. This relevant evidence confirming the genuineness of the transactions made by the assessee on MCX Stock Exchange Ltd. was brushed aside by the A.O. on the ground that profit shown therein was Rs. 2,517/- whereas the assessee had claimed a loss of Rs. 13,10,688/-. As submitted on behalf of the assessee before the Ld. CIT(A) as well as before us, expenditure was incurred by the assessee relating to the said transactions on account of brokerage, service tax and other charges levied by the....