TaxTMI 
TaxTMI 
2022 (8) TMI 629
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....aised the following substantial questions of law for consideration: " i) Whether on the facts and circumstances of the case and in law the Income Tax Appellate Tribunal erred in not appreciating the fact that Pr. Commissioner of Income Tax in this order under section 263 clearly mentioned that the Assessing Officer made no enquiries on the issues mentioned in the order? ii) Whether on the facts and circumstances of the case and in law the Income Tax Appellate Tribunal erred in not appreciating that the assessment records also points out to the fact that the Assessing Officer had made no investigation on the fact of loss on dealing commodities of Rs.41,25,364/- claimed by the assessee as business expenses? iii) Whether on the facts a....
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....olved settlement otherwise than the actual delivery or transfer of any commodity. In this regard, the provisions of Section 43(3) were referred to and the assessee was informed that their case was not covered by any of the exceptions specified in the proviso to sub-Section (5) of Section 43 and, therefore, proposed that the loss claimed by the assessee was to be considered as a speculation loss and was not to be allowed. The assessee submitted their reply to the show cause notice firstly pointing out that M/s. Godavari Exim Pvt. Ltd. was a member of MCA Stock Exchange Ltd. In this regard the assessee referred to notification no.46 of 2009 dated 22nd May, 2009 which recognised MCX Stock Exchange Ltd. as an Exchange under clause (ii) of Expl....
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.... held that the assessment order is erroneous and prejudicial to the interest of the revenue. Aggrieved by such order, the assessee preferred appeal before the tribunal which was allowed. Firstly, we note that the allegation in the show cause notice is confined to whether the transaction should be treated as a speculation loss or not. Admittedly, documents were placed by the assessee stating that M/s. Godavari Exim Pvt. Ltd. was registered with MCX Stock Exchange Ltd. which is a notified stock exchange. This position could not be disputed by the PCIT and, therefore, proceeded on a different angle which were not the materials based on which show cause notice was issued. Thus, a fundamental error has been committed by the PCIT by proceeding b....