2026 (5) TMI 1717

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....on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was justified in restricting the addition to the extent of the profit element embedded in the transaction of Rs. 10,12,01,220/- made by the assessee on account of buying of commodities through Anand Rathi Commodities Ltd. by Client Code Modification? 3. The appellant craves leave to amend or alter any ground or add a new ground, which may be necessary. 4. It is, therefore, prayed that the order of Ld. CIT(A) may be set aside and that of the Assessing Office be restored." ITA No. 1967/Ahd/2025 (A.Y. 2014-15) "1. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was justified in deleting the penalty of Rs. 2,00,17,331/- u/s 271(1)(c) of the I T Act, without appreciating the facts of the case? 2. The appellant craves leave to amend or alter any ground or add a new ground, which may be necessary. 3. It is, therefore, prayed that the order of Ld. CIT(A) may be set aside and that of the Assessing Officer be restored." ITA Nos. 1966/Ahd/2025 & 1967/Ahd/2025 (A.Y. 2014-15) 3. The brief facts of the case are that the asse....

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....e Act. 6. The assessee, however, submitted before the Assessing Officer that all commodity transactions were genuine business transactions carried out in the ordinary course of business through registered broker Anand Rathi Commodities Ltd. on the NSEL platform. The assessee submitted that it had no knowledge whatsoever regarding any alleged client code modification carried out by the broker and no instructions had ever been given by the assessee to the broker for carrying out such modifications. It was further submitted that the assessee had independently executed purchase and sale transactions of commodities through the broker and corresponding contract notes were issued in the name of the assessee company itself. The assessee also furnished documentary evidences including copies of contract notes, details of transactions, broker ledger accounts and bank statements evidencing payments made towards purchases and receipts against sales through banking channels. The assessee further submitted that the payments towards purchase of commodities were made entirely out of business funds generated from trading activity in cotton bales and therefore no part of the transactions could be ....

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....the earlier round and therefore judicial consistency required that the same view should be followed. The assessee further submitted that the total profit of Rs. 17,59,312/- from all commodity transactions had already been offered to tax by the assessee in the original return itself and therefore there was no question of making any separate addition under section 68 of the Act. The assessee clarified that out of total profit of Rs. 17,59,312/-, an amount of Rs. 9,26,100/- related to transactions covered in the first reassessment proceedings while balance amount of Rs. 8,33,212/- pertained to the transactions which were the subject matter of the present reassessment proceedings. 9. The Ld. CIT(A), after considering the submissions of the assessee, examining the assessment order, documentary evidences placed on record and the order passed by the Hon'ble ITAT in the assessee's own case for the same assessment year, granted substantial relief to the assessee. The CIT(Appeals) observed that the nature of transactions, broker involved, allegations relating to client code modification and surrounding facts in the present reassessment proceedings were completely identical to those alread....

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....nsactions executed by the assessee through M/s Anand Rathi Commodities Ltd. on the NSEL platform. 15. The assessee company is engaged in the business of trading in cotton bales and also acts as a commission agent. During the year under consideration, the assessee entered into purchase and sale transactions of commodities through broker M/s Anand Rathi Commodities Ltd. on the NSEL platform. The Assessing Officer treated the purchase value of certain trades amounting to Rs. 4,66,57,670/- as unexplained cash credit under section 68 of the Act on the ground that such trades involved client code modification (CCM) carried out by the broker with original clients namely Navratan Mal Gupta, Ashrit Holdings Ltd., Borosil Glass Works Ltd. and Shirish Rege. 16. We find that identical issue involving the same assessee, same assessment year, same broker and same allegation of client code modification had already travelled before the Coordinate Bench of Ahmedabad Tribunal in assessee's own case arising out of the first reassessment proceedings for A.Y. 2014-15 in ITA No.398/Ahd/2023 order dated 24.06.2025. The Coordinate Bench, after detailed examination of the nature of transactions, cont....