2026 (2) TMI 1301

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....rming action of ld. AO of reopening the assessment u/s. 147 of the Act. Under the facts and circumstances of the case, the action of reopening is without jurisdiction and in not permissible either in law or on facts. 2. The learned CIT(A) has erred in law and on facts of the case in confirming action of ld. AO in making addition of purchase as well as sale transactions aggregating to Rs. 3,90,09,960/- carried on NSEL. u/s. 68 of the Act only on the basis of surmises and conjectures without any corroborative evidence. 3. Both the lower authorities failed to appreciate that Section 68 of the Act has no application in the facts and circumstances of the present case. As the transaction relates to commodity trading whereby only....

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.... tax effect Rs. 1,17,02,988/-" 3. The assessee is trading in agricultural commodities mainly cotton bales and trading in future market currency and derivatives market. The assessee filed its return of income for A.Y. 2013-14 declaring total income of Rs. 97,81,460/-. The case of the assessee was selected for scrutiny. Assessment order u/s. 143(3) was passed on 29-02-2016 determining total income of Rs. 1,04,39,005/-. As per the information, the Assessing Officer observed that the transaction done by the assessee company with M/s Anand Rathi Commodities Ltd. with the original client Navratan Amla Gupta is that of buy amount to Rs. 1,93,38,000/- and total sale amount was Rs. 1,96,71,960/- totaling to Rs. 3,90,09,960/- during the year under....

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....l in assessee's own case being ITA No. 395-Ahd-2023 for A.Y. 2014-15. The ld. A.R. submitted that the Assessing Officer has not taken cognizance of the documentary evidences related to the genuineness of the transactions such as contract notes, broker ledgers and bank statements. The Assessing Officer submitted that the brokerage of Rs. 3,33,960/- on the transaction in question is part of the total profit of Rs. 6,89,010/- reflected as income from spot arbitrage under the head other income in the profit and loss account which was duly offered to tax in the return of income. The ld. A.R. submitted that the factual aspect of the present assessee's case is identical to the subsequent assessment year i.e. assessment year 2014-15. 6. The ld. ....