TaxTMI 
TaxTMI 
2022 (5) TMI 509
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....5,40,478/- from F & O trading was to be assessed either as business income or under either of the heads of income A to F of section 14 of the LT. Act without appreciating the fact that the investigation and analysis of the facts as borne out by the A.O. in the assessment order clearly establish that the profit was bogus and sham earned through synchronized trading in illiquid stock option and accordingly the same was correctly assessed u/s 68 of the IT Act. 2. On the facts and circumstances of the case, the ld. CIT(A) erred in allowing assesse's claim that the profit of Rs. 5,75,40,478/- from F&O trading was to be assessed either as business income or under either of the heads of income A to F of section 14 of the IT. Act merely by relyin....
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....e Act. The assessee also claimed the expenditure to the tune of Rs.14,38,512/- which was also found fictitious, therefore, the same was also disallowed and added to the income of the assessee u/s 69C of the Act. The total income of the assessee was assessed to the tune of Rs.5,89,78,990/-. Feeling aggrieved, the assessee filed an appeal before the CIT(A) and the CIT(A) allowed the claim of the assessee but the revenue was not satisfied, therefore, filed the present appeal before us. ISSUE Nos.1 & 2 4. We have heard the arguments advanced by the Ld. Representative of the parties and perused the record. Under these issues the revenue has challenged the allowance of the claim of Rs.5,75,40,478/- from F & O trading. Before going further, we d....
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....d sum under Income from undisclosed sources. The issue arises here when the Assessee himself has declared the same to be his Income from Business & offered for Taxation in Return of Income as such, then whether the same can be treated as income from undisclosed sources. The AR of the Appellant referred to the various Citations. However, I have considered only two of them which are close to the present issue. The First one being the citation in the case of Margaret's Hope Tea Co. Ltd. 71 Taxman 574 (Calcutta)(1990), wherein Para 7 the Bench observed as follows: A similar question came up before this Court in C/T v. Hasimara Industries Ltd. [IT Reference No. 5 of 1984, dated 25-7-1983]. There, the bench, after considering the decision in Da....
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....stock of diamond of Rs.13,47,63,640/-is taxable either under Income from Business & Profession or under income from other sources. The Hon'ble Mumbai Tribunal in the same case further observed at Para No. 14 as follows: 14. With regard to set off of losses, once it is decided that the income is taxable under either of the head of income A to F of section 14 of the Act, then the set off losses is permitted under section 7lof the Act. The income declared at the time of search was in respect of excess stock found which was in nature of business activity therefore part of business income. Even if the said amount was to be taxed than the same should be under the head income from other sources and therefore current year loss of Rs.13,47,63,64....
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....on of Rs.14,38,512/- being the brokerage and commission u/s 69C of the Act. Before going further, we deem it necessary to advert the finding of the CIT(A) on record.:- "(ii) Ground No. 2 To 4: The Ground No. 2 to 4 of the Appeal relates to Non-Applicability of Sec. 115BBE of the Act, hence these grounds are considered collectively. As per the said grounds the AR of the Appellant argued that the amended provisions of the Sec. 115BBE are not applicable to the present case. In this regard, | reproduced the text of Sec. 115BBE as follows : 14[Tax on income referred to in section 68 or section 69 or section 69A or section 69B or section 69C or section 69D. 115BBE. 15{(1) Where the total income of an assessee, (a) includes any income re....
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...., section 69B, section 69C or section 69D, at the rate of thirty per cent; and (b) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the amount of income referred to in clause (a)." 16. Inserted by the Finance Act, 2016, w.e.f. 1-4-2017. 16a. Inserted by the Finance Act, 2018, w.r.e.f. 1-4-2017. From the definition of Sec. 115BBE it is clear that restriction on set off of loss against Income taxed by the AO u/s 68 is effective only from-QL04,2017, Such restriction was not there till AY 2016-17. Precisely, it does not apply to the case under review which relates to AY 2015-16. Prior to 01.04.2017 the restriction was only in respect of deduction of any Expenditure or Allow....