2025 (9) TMI 1478

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nt has filed condonation petition. On perusal of the condonation petition, the reason for delay in filing the appeal is genuine and bonafide. The Ld. A.R did not raise any objection in condoning the delay. Keeping in view, the condonation petition as well as judicial pronouncement that the case should be decided on merit not on technical issue. The delay is hereby condoned. 3. Brief facts of the case of the assessee are that the assessee M/s Aryansh Forging Pvt. Ltd. filed original return of income declaring total income at Rs. 3,36,970/-. The case of the assessee was reopened, notice u/s 148 was issued. In response to this notice, the assessee did not file return of income for the assessment year under consideration, further notice u/s ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....0,718/-. 6. Contrary to that the Ld. A.R supports the impugned order thereby submitting that there is no illegality in the impugned order as the Ld. CIT(A) after considering the submission of the assessee, documentary evidences and the settled law has held that the actual loss of the assessee was Rs. 11,92,144.02/- and the assessee has filed party broker ledger, contract notes and relevant bank statement in support of the transaction. The Ld. Counsel further submits that contract notes clearly established that there amount of Rs. 29,65,000/- was actually trade value and not the loss amount as allowed by the AO. The Ld. Counsel further challenges the reason stated in the reopening of the cases and submitted that going over the above reaso....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ency derivatives Rs. 11,92,144.02 As seen from the above calculation, the loss incurred as per contract notes and broker ledger is Rs. 11,92,144.02 and not Rs. 29,65,00,718/- as alleged by the Ld. A.Ο. Therefore, the Ld. AO has erred in treating the amount of Rs. 29,65,00,718/- as loss of the assessee. The said amount is nothing but the total of each lot traded and the same is not required to be recorded in the books of accounts. However, the assessee is required to record the difference of favorable and unfavorable trades i.e. net profit or net loss i.e. Rs. 11,92,144.02 (in the present case) as detailed above. In support of our contention, we are enclosing the guidelines given by the Institute of chartered accounts of India.....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... CIT(A) after going over the submissions, going over the broker ledger has held thus: "6.7 The submission made by the appellant in this regard is that from the reasons recorded and 1st para of the Order, it can be clearly seen that the amount of Rs. 29,65,00,718/- is the total trade value and not the alleged loss. To confirm the same we are enclosing the broker ledger of the assessee from wherein trade wise amount has been mentioned. Purchase for us Sold for us The total trade of ledger no 1 is Rs 31499713/- Rs 264478696/- The total trade of ledger no 2 is Rs 31344034/- Rs 265819807/- We are not aware that as to how the Ld. AO has calculated the figure of Rs. 29,65,00,718/- But as per Ledger of the broke....