TaxTMI 
TaxTMI 
2015 (7) TMI 1439
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....ause the Ld. Appellate authority erred in confirming the addition of Rs. 10000/- out of House Hold Expenses. 5. Because the Ld. Appellate authority erred in confirming the disallowance of 1/5th in car expenses ignoring that while computing total car expenses, Vat Expenses of Rs. 24270/- is added." 3. It is observed that there is delay of seven days in filing the appeal. The assessee has filed an application for condonation of delay, wherein it is stated that he is residing at Dhuri and the counsel to whom the documents were given for preparing the memo of appeal is residing at Ludhiana and, therefore, some delay has been occurred in reaching the documents at Ludhiana and then to Chandigarh. Accordingly, it was submitted that the delay of seven days may be condoned. 4. After hearing the learned representatives of both the parties, I am satisfied that the explanation for the delay was satisfactory. It is true that ordinarily, a litigant does not stand to benefit by lodging the appeal late. In fact, he runs a serious risk. At the same time, it is also well settled law that the jurisdiction to condone the delay should be exercised liberally. The matter relating to condon....
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....ons. No books of account and supporting evidence with regard to commodity transactions were produced. In such circumstances, the Assessing Officer concluded that the deposits of Rs. 10,85,734/- appearing in the capital account of the assessee as also in his bank account represented assessee's income from other sources. Consequently, the Assessing Officer added the sum of Rs. 10,85,734/- to the total income of the assessee. 8. On appeal, the learned CIT (Appeals) confirmed the addition holding that the claim of the assessee that two credit entries in his capital account were on account of profits from commodity transactions is not correct. He further observed that the Assessing Officer has established beyond doubt from the investigations carried out during the course of assessment proceedings that this claim is a mere self-serving statement in order to justify two credit entries. The learned CIT (Appeals) also observed that Shri Shagun Garg did not produce the books of account during the course of assessment proceedings in order to prove the genuineness of the claim with regard to commodity transactions. The learned CIT (Appeals) has categorically stated that the transactions....
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....d on oath on 9.11.2009 is available in assessee's Paper Book at pages 7 to 12. The relevant part of the statement of Shri Shagun Garg reads as under: "Q. What is your source of income? Ans. I am running a franchising of SMC Global Securities, Drayea Ganj Near Golcha Cinema, New Delhi. In these days, I get brokerage income from the transactions done with client in stocks and commodities exchange on sharing basis. Earlier I was running a concern namely M/s. Pashupati Scripts at SCO 123, Basement, Feroze Gandhi Market, Ludhiana. This concern was in operation from April 2006 to March 2008. This concern was doing the business of stocks and commodities broking. Q. What was working capital of this firm? Ans. At present I am not aware of but will tell later on next date. Q. Have you advanced any amount to Shri Timple Kumar, Prop. M/s. Gupta Electronics, Old Grain Market, Dhuri during financial year 1.4.2006 to 31.3.2007. Ans. No. Q. I am showing a statement according to which an amount of Rs. 6 lacs and. 4 lacs 85 thousands 7 hundred 34 (total Rs. 1085734) have been paid by you to Shri Timple Kumar vide D.D. No. 191054 and ....
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....repared from the bank account of M/s. Manavi Comfin Services, which belonged to Shri Shagun Garg. It is also apparent from record that Shri Shagun Garg submitted a copy of income tax return, copy of ITR for the assessment years 2005-06 to 2007-08 with PAN number. Bank account wherefrom the demand drafts have been issued, were procured and placed on record by the Assessing Officer herself. It is also relevant to state that the confirmed copy of account of the assessee in the books of M/s. Pashupati Scripts, Ludhiana for the period 1.4.2006 to 31.3.2007 is available at page 5 of assessee's Paper Book. From this account, it is clear that M/s. Pashupati Scripts paid a sum of Rs. 6 lacs and Rs. 4,85,734/- to the assessee. The copy of statement of account of the assessee in the books of M/s. Pashupati Scripts, Ludhiana alongwith statement of sauda (commodity transaction) and different bills for the assessment year 2007-08 produced and filed before the Assessing Officer during the course of assessment proceedings and are available at pages 35 to 41 of assessee's Paper Book. The copy of reply dated 23.12.2009 filed to the Assessing Officer on 24.12.2009 by Shri Shagun Garg in respo....
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....ergone the operation where nailing and plating was done in his body. He had suffered a head injury also. It is stated that he could only walk with the help of stick. He was not mentally updated and was not in a position to reply the questions particularly in respect of the past working as he could not recollect the past activities quickly. There was loss of memory also. The learned counsel for the assessee submitted that when the assessee appeared before the Assessing Officer, even that time he was walking with a stick and categorically stated that he does not remember anything about the entries. The assessee had stated before the Assessing Officer that he does not know much about the matter, which could be explained by his counsel in a better way. Accordingly, the learned counsel for the assessee submitted that the learned CIT (Appeals) has wrongly relied upon the statement of the assessee recorded on 23.11.2009. I have perused the copy of discharge slip of Shri Timple Kumar issued by Dayanand Medical College & Hospital, Ludhiana, and OPD slip of Shree Sanatan Dharam Charitable Hospital, Dhuri. It is apparent from these documents that on 25.8.2009, the assessee was admitted in Day....
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....f MCX. They also stated that the assessee is not registered as a client with any member(s) of the Exchange. Multi Commodity Exchange of India Ltd. also stated that in the bills attached, the basic details like trade number, trade time, client code, member code are not mentioned. Therefore, they have stated that in the absence of even basic details, they were unable to verify whether the trades were carried out at MCX. Thus, it is clear that the Assessing Officer has not conducted the proper enquiries without mentioning the basic details like trade number, trade time, client code, etc. In my opinion, this was a futile exercise on the part of the Assessing Officer. The learned CIT (Appeals) vide his letter dated 1.2.2011 directed the Assessing Officer to check the assessment status of these issues in the hands of the concern brokers. In this regard, the Assessing Officer vide his report dated 29.5.2012 submitted that these transactions were made through principle to principle and not through MCX, whereas it is necessary to make valid commodity transactions through MCX, Mumbai as per their clause. Accordingly, it was stated by the Assessing Officer that the impugned addition was prope....