2022 (3) TMI 768

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....ORDER Per Ms Madhumita Roy , JM The instant appeal filed by the assessee is directed against the order dated 05.01.2016 passed by the Commissioner of Income Tax (Appeals)-13, Ahmedabad arising out of the order dated 25.03.2013 passed by the ITO, Ward-7(1), Ahmedabad under Section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") for A.Y. 2010-11. 2. We have heard t....

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.... found that there is a drop in the Gross Profit Ratio due to huge loss incurred by the assessee in the trading of Palmolein Oil. The assessee entered into contract with broker to purchase specified quantity of Palmolein Oil at a specified rate and the delivery to be taken to within a specified time period too. Accordingly, whenever the assessee failed to purchase the product within the specific pe....

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.... In this particular case the Ld. AO has adopted the spot rate when as the appellant had made contracts in forward market as per his business model. It is also relevant to mention that the appellant is bound to execute the contract entered into with the broker for taking delivery of the Palmolein Oil within the specified period and in the event he fails to do the same the rate specified in the con....

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....urchase/sales and the same is constantly done by the appellant. Therefore, it is a rate of delivery as per the contract price which is applicable and not the spot rate on the date of delivery; as the letter ignores the fundamentals of future contracts as prevalent to the impugned trade of the appellant. 9. It appears that the Ld. AO has made the addition holding the transaction as non-genuine w....