TaxTMI 
TaxTMI 
2023 (1) TMI 616
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.... in not appreciating that the Appellant belongs to a lower-middle class family and his total income for the prior five years is as under: 5. The Ld. CIT(A) erred in not appreciating that for earning an income of Rs.43,49,79,005/- outside the books of accounts, Appellant would require an investment of almost Rs.430 Crores outside the books of accounts, whereas his total assets as on 31st March, 2007 is at Rs.4,26,297/-/- as per his Balance Sheet filed with the Department both before and after Assessment Year 2007-08 for several years. Sr. No. Assessment Year. Total Income Date of filing of Return 1. 2002-03 Rs.46,480/- 18.02.2003 2. 2003-04 Rs.60,960/- 22-07-2003 3. 2004-05 Rs.64,980/- 30-09-2004 4. 2005-06 Rs.Nil (below taxable limit -return not filed) 5. 2006-07 (-) Rs.2,35,547/- 30-10-2006 (loss return) 4. The ld. CIT (A) erred in not appreciating that the Appellant belongs to a lower-middle class family and his total income for the later four years is as under:- Sr. No. Assessment Year. Total Income Date of filing of Return 1. 2009-10 Rs. Nil --- (below taxable limit -return not filed) 2. 2010-11 Rs. Nil (below taxable limit -return not file....
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....ely relying on the remand report of the then AO and recording his finding and satisfaction on the matter". 3. On the facts and in the circumstances of the case and in law, the CIT(A) erred in allowing the claim of MCX trading loss of Rs. 1,34,28,014/, without appreciating the fact that the remand proceedings and the appellate proceedings have been conducted in the manner which is akin to almost setting aside the assessment"." 04. Brief facts of the case shows that assessee is an individual stated to be dealing in gold and silver and at commodities exchange. He filed his return of income for A.Y. 2007-08 on 31st October, 2007, declaring nil income. 05. The case of the assessee was picked up for scrutiny under the compulsory ground that assessee's turnover is more than 20 crores. Several notices were issued to the assessee but no compliances were made. 06. Ultimately, the counsel of the assessee attended on 17th December, 2009 and submitted statement of total income, profit and loss account, balance sheet under the covering letter. The current address of the assessee was also stated to be at D-9, Heena Garden Complex, Pipeline Road, Khadakpada, Kalyan. It was also stated that as....
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....urther noted that assessee has made total gross profit of Rs.42 lacs in cash transaction contrary to the observation of the learned Assessing Officer that no margin of profit was shown by the assessee. He further held that assessee has given the names of the customers and such sales were made out of the purchases from the above two parties. He further held that assessee has never done any business in the past and therefore, the source of the above sales as undisclosed income is not acceptable. Accordingly, he deleted the addition of Rs.658 crores made by the learned Assessing Officer by bringing the entire sales to tax as undisclosed income. b. With respect to the trading loss of Rs.1,34,28,014/- based on the verification of the contract notes and the copies of the ledger account of the assessee with MCX and NCDEX. c. With respect to the unsecured loan of Rs.43,49,79,005/-, the learned CIT (A) after taking the remand report, he held that assessee has failed to establish the identity and creditworthiness of the creditors and the genuineness of the transaction and therefore, same is confirmed. However, he deleted the addition to the extent of Rs.6,87,89,490/- pertaining to Union ....
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....g, I made myself clear to M/s. Riddhi Siddhi Bullion Ltd and Shri. Dinesh Jani that I belong to a poor family and my monthly income is approximately Rs.25,000/- which is hardly sufficient to look after both the educational expenses of my child as well as maintenance of my family. Practically, there are no savings during the last fifteen years. 3. Shri. Dinesh Jani sometimes in the year 2005 motivated me to do some illegal business transactions of the following parties. In friendship, I listened to him and signed wherever Shri. Jani asked to me to sign the papers. I have no capacity to do such big transactions running into crores of rupees. I am very very poor person, how I can do transitions of such big amounts? You may please enquire about my financial position both with Shri. Bhawarlalji Kothari and Shri. Jani who motivated me to do such illegal business transactions and, as a result of which, I have filed false returns due to these persons i.e. Shri. Bhawarlalji Kothari and Shri. Dinesh Jani. Actually, I have not done any business transactions of purchase and supply of diamonds with the following parties:- (1) Riddhi Siddhi Bullion Ltd ] Amount (II) Anand Gupta ] Disallo....
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....rder of the learned Assessing Officer. It was submitted that the addition of sale consideration was wrongly deleted by the learned CIT (A) when assessee himself at present is saying that purchases made from M/s. Riddhi Siddhi Bullion Ltd. is bogus. He therefore submitted that the addition made by the learned Assessing Officer deserves to be confirmed. 016. We have carefully considered the rival contentions and perused the orders of the lower authorities. In the present case, the assessee himself on an affidavit stated that he is a person of no means and did not carry on of such huge business. He on an affidavit has stated that his purchases from M/s. Riddhi Siddhi Bullion Ltd. are bogus and his cheque book is also in the custody of Mr. Dinesh Jani of M/s. Riddhi Siddhi Bullion Ltd. Therefore, the finding of the learned CIT (A) falls flat. Now it cannot be said that purchases shown by Ridhi Sindhi Bullion and Hundia Exports to assessee is genuine. Even an affidavit of the assessee says that his purchase from M/s. Riddhi Siddhi Bullion Ltd. is bogus. Thus deletion of entire purchases of the assessee accepting it as genuine is not sustainable. 017. Further, the sale consideration re....