TaxTMI 
TaxTMI 
2023 (1) TMI 616
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....for the Assessment Year 2007 -08. 3. The Ld. CIT(A) erred 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 Retur....
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....emises of his own to carry on the business" 2. 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/-" by merely 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 incom....
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....that assessee has purchased gold worth Rs.403 crores from M/s Riddhi Siddhi Bullion Ltd. and Rs.155 crores from M/s Hundia exports. In the assessment of these two parties for A.Y. 2007-08, the entire purchases were made by the assessee was accepted. He further 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 rema....
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....ime in 2014 allowing almost 95% of the additions. Now the appeal is pending before the Hon'ble Tribunal for the balance addition of Rs.43 Crores approximately. The CIT (A) has deleted the addition of Rs.658 Crores approximately against which the Department is in appeal before the Hon'ble Tribunal. 2. All along, 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 busi....
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....in the nutshell, the submission of the assessee is that he has not done any transaction but it is Mr. Dinesh Jani and Mr. Shri. Bhawarlalji Kothari, who motivated him to do the bogus business. In nutshell, the statement of the assessee also says that purchases showed by him from M/s. Riddhi Siddhi Bullion Ltd. are bogus. 015. The learned Departmental Representative vehemently supported the order 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. Therefo....