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2016 (11) TMI 713 - HC - Income TaxDisallowance of commodity loss - ingenuine transaction - Held that:- The onus was upon the assessee to prove the genuineness of the transactions by producing the relevant evidence and the material on record which he failed to do. He was unable to produce the authorised representatives of M/s. Anand Commodities Trading Services as the initial onus was upon him to establish genuineness of the loss. Opportunity was given to the appellant in this regard. The evidence collected from Ludhiana Stock Exchange and confronted to the assessee proved that the commodity transaction was not actually carried out but was merely accommodation entries. Further, Ludhiana Commodities Trading Services Limited in reply dated April 8, 2013 to the query dated April 3, 2013 by the Commissioner of Income-tax (Appeals) intimated that M/s. SMS and Company Prop. Shri Sham Sunder Khanna was not registered as a client with M/s. Anand Commodities Services Limited in the year 2015-16. The assessee-appellant was prima facie required to prove the validity of the transaction. The assessee having failed to do so, no right accrues in his favour on account of non- summoning of the witness under section 131 of the Act by the Assessing Officer.
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