2025 (11) TMI 1612

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.... Rs.1,54,10,350/- by the learned CIT (A) as made by the learned AO on account of bogus loss on current year derivatives. 03. The facts in brief are that the assessee is a broker with allotted client code No.CK-0477 for trading in currency derivatives at MCX Stock Exchange. The assessee had issued valid contract notes in respect of online trading and all the transactions were accepted on the stock exchange platform. All the transactions were through banking channel. However, the learned AO added the loss incurred by the assessee of Rs.1,54,10,00,350/- as bogus loss. 04. In the appellate proceedings, the learned CIT (A) allowed the appeal of the assessee by holding that the assessee has indulged in derivative trading in MCX stock exchan....

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....aring the rival contentions and perusing the materials available on record including the appellate order, we find that the learned CIT (A) has given a very clear-cut finding on the issue that the learned AO failed to bring on record any material corroborating the allegation against the assessee whereas the assessee has filed all the contract notes for the transactions executed on the exchange before the learned AO. We note that the learned AO has only acted on the report of the investigation wing and retracted statement of Shri Sachet Saraf. Thus, we do not find any infirmity in the order of the learned CIT (A) and are inclined to uphold that the same on this issue by dismissing ground no. 1 and 2 in the appeal of the Revenue. 06. The is....

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....value of the property as on 31.01.2012 was Rs. 12,07,89,700/- whereas assessee had declared the sale consideration of Rs. 11,51,08,600/- as on 31.01.2012. Thus, the difference between the estimated value and the declared value was less than 5% of the declared value. As appellant in its submissions had claimed that safe harbour rule of 5%, as per the 3 rd proviso to section 50C, would be applicable in its case in view of several judicial pronouncements, AO was asked to offer his comments on this issue. Vide letter dated 28.11.2022, AO has submitted that 3 rd proviso to section 50C was inserted by Finance Act, 2018 and it was effective from 01.04.2019. AO has mentioned that there is no provision that this amendment would be applicable retrosp....

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....sequently there will be no occasion to disturb the WDV in respect of buildings. This would also imply that depreciation worked out as per remaining WDV in the depreciation chart would be same as declared by the assessee. Hence, addition in respect of excess claim of depreciation is not sustainable. In view of the above discussion, addition of Rs. 3,63,137/- under the head 'capital gains' is deleted. 08. Considering the facts of the above case and the order passed by the appellate authority, we are in full agreement with the conclusion drawn by the learned CIT (A) with regard to the difference being within the permissible limit as per third proviso to Section 50C of the Act. Therefore, no addition can be made. Accordingly, we uphold the o....