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2016 (4) TMI 671 - AT - Income TaxLoss relating to trading in gold and silver - business loss OR speculation loss - Held that:- In view of the order in the case of Varsha Corporation [2015 (6) TMI 124 - ITAT MUMBAI] we are inclined to uphold the order of the Assessing Officer that loss arising out of the commodities dealt with by the assessee i.e gold, silver, copper, zinc, natural gas, nickel etc are to be considered as speculation loss only and the assessee is not entitled to set off the same against business income of the assessee. - Decided against assessee Addition made towards inflated purchase of gold - Held that:- The common practice in the jewellery business cannot prove genuineness of the purchases made by the assessee. Further, the Sales Tax Department is only concerned with the sales tax on the sales made by the assessee. They are not certifying the correctness of the local purchases made by the assessee. Being so, it cannot be considered as the evidence produced by the assessee is foolproof. Since the assessee has not produced all relevant records to prove the genuineness of the local purchases made by the assessee, the Assessing Officer is justified in disallowing the claim towards the local purchases of old gold jewellery made by the assessee. - Decided against assessee Addition made u/s 68 towards sundry creditors - Held that:- CIT(A) simply observed that "I find that the Assessing Officer after due verification has not commented adversely on any of the explanation given by the appellant" and deleted the addition. The findings of the CIT(A) is very cryptic. There are no details on the basis of which he has given relief to the assessee. Hence, in our opinion, it is appropriate to remit the matter back to the file of the CIT(A) for reconsideration. The ld. CIT(A) shall pass a detailed order in accordance with law.
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