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2019 (7) TMI 1557 - ITAT MUMBAIRevision u/s 263 - huge losses claimed - HELD THAT:- Assessee company during the year has engaged in high sea purchase and sale transaction on 16 different occasions on back-to-back basis. The origins of the goods where the same and ultimate destination was same that is Ruchi Soya limited. The transactions were entered into in a short period of 2 months . Except for 2 transactions where small profit of ₹ 6,280/- was booked, losses of ₹ 241842096/- were booked. All these transactions are entirely nondelivery based. The contracts for the high sea sales were entered mid of September 2012 to October 2012. The contracts were not registered. In these circumstances it was amply clear that the transactions were dubious in nature and required proper explanation. The fact that the transactions were unusual the ultimate consignee was Ruchi Soya Ltd. was glaring. The assessing officer has asked the assessee to give details of its sister concern's. But the assessee never gave the details. The detail of sister concern would certainly shed light on the parties with whom the transactions have been entered as to whether they are at arm’s length with each or not. The unusual loss hence obviously needed explanation. The assessing officer asked the assessee to explain the reason for the unusual loss. The assessee never gave any explanation. The assessing officer without any application of mind and without bringing on record the reply or the result of any further enquiry laconically passed the summary assessment order allowing the huge loss. In these circumstances the Learned counsel of the assessee’s contention that assessee has provided all the necessary details and the assessing officer has applied his mind is clearly not sustainable. Assessee has not given the explanation for the unusual loss despite inquiry. It has also not given details of sister concern. This is vital in view of the dubious nature of layered transaction. Hence in the background of the aforesaid discussion and precedent in our considered opinion there is no infirmity in the order of learned CIT. hence, we uphold the same. - Decided against assessee.
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