2025 (12) TMI 541

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....confirming the addition of Rs. 7,84,46,800/-, which was made by the learned AO on account of BSE F&O (shares) loss of Rs. 5,01,71,829/- and currency derivative loss of Rs. 2,75,70,970/-. 3.1. The facts in brief are that the assessee filed the return of income on 27.09.2015, declaring the total income at Rs. 7,04,010/-. Subsequently, the case of the assessee was selected for scrutiny and notice u/s 143(2) and 142(1) of the Act along with questionnaire were duly issued. The case of the assessee was selected for scrutiny for large value commodity exchange transactions, low net profit from share broking business, reconciliation of mismatch of sales turnover reported in audit report and ITR, etc. The learned AO noted that the assessee has boo....

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....ombay Stock Exchange has passed an ex-parte order / interim order dated 20.08.2015, in which they informed the transactions in the assessee's case in BSE F&O (shares) were under SEBI scrutiny. The assessee further informed that assessee has preferred an appeal against the ex-parte order of SEBI and finally, the order is yet to given. The learned AO treated the loss booked by the assessee of Rs. 5,01,71,807.36 through M/s Goodluck Securities as bogus thereby rejecting the loss set off against the regular income from commodity trading activities. Similarly, in respect of current year derivative loss the learned AO noted that the assessee has booked Rs. 2,75,70,970/- by transacting only nine transactions through M/s Goodluck Securities between....

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....le to the Bombay Stock Exchange platform. Therefore, the reliance by the DR on this order is misplaced and wrong. Though, in the said order the certificate of registration of the assessee with National Spot Exchange limited was cancelled. The assessee has filed before the AO as well as before the learned CIT(A) all the evidences qua these transactions carried out on the Bombay Stock Exchange Platform with which no fault has been found by either of the authorities below and the only allegation is that assessee carried out this trade through M/s Goodluck Securities despite the fact that the assessee itself a stock broker. In our opinion, there is no bar in carrying out the transactions through any stock broker. The issue is squarely covered b....

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..... AO in his order however, in the ad-interim of SEBI, none of these parties have even been mentioned or there is any whisper that they were indulged in synchronized trading. As regards to the statement of the assessee, during the survey wherein assessee has offered to withdraw the loss in light of the statement of the property of Goodluck Securities and ad-interim SEBI order, the same was given on the presumption that Ad-interim SEBI order was in force and the statement of Goodluck Securities was correct. However, nowhere assessee had finally offered any such loss or offered to disallow such loss. 33. In so far as SEBI ad-interim order, the same was passed exparte and it is also a matter of fact vide subsequent order dated 22/08/20....