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2014 (1) TMI 984 - AT - Income TaxNature of loss on share transaction - speculative transaction or not - Held that:- The clearing difference has been determined by the appellant on the basis of statement of purchase and sales of shares and securities made on his behalf by broker - A perusal of the ledger account of broker maintained in the books of the appellant and the contract notes issued by the said company clearly reveals that the broker has actually purchased and sold shares and securities on behalf of the assessee and necessary charges on account of STT, stamp duty and other statutory levies have been debited to the assessee's account - The purchase and sale is routed through demat accounts and the only way to find out the profit and loss on the purchase and sales of securities made through a broker is the account statement submitted by such broker from time to time. In the present case, the appellant has maintained all the regular books of accounts and all necessary details have been filed before the AO in the course of assessment proceedings - The loss claimed is normal business loss - Decided against Revenue. Interest free unsecured loans received - additions u/s 56 rw.s. 68 - Held that:- the appellant has furnished all necessary evidence, namely, confirmations, copy of returns, copy of balance sheet and P&L A/c and the copy of bank statements evidencing obtaining and repayment of loans in question. Therefore, the primary burden placed on the appellant to prove the identity and creditworthiness of the creditors and genuineness of transactions was duly discharged - in the course of remand proceedings, all the creditors have appeared before the AO and their statements have been recorded. Therefore, the case of the appellant is that the issue of loans/cash credits cannot be decided on the basis of a solitary failure on the part of the appellant to produce the creditors in the course of assessment on short notice - merely because at a particular point of time they were not found at the given addresses would not be sufficient to hold that the said companies are non-existent entities and the transactions are bogus - Decided against Revenue.
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