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2022 (6) TMI 742 - AT - Income TaxUnexplained cash credits u/s.68 - HELD THAT:- We are of the considered view that once AO has accepted the assessee’s figure of receipts from job work declared in the return of income on the basis of which return has been filed by the assessee on presumptive basis under section 44AD AO is precluded from making separate additions u/s 68 to the returned income on the basis that the assessee has not been able to prove the fact of carrying out job work activity in absence of adequate supporting documents etc. without disturbing the figure declared by the assessee offered as job work receipts. As regards cash deposits the assessee has filed confirmations along with identity proofs of lenders and the same has not been disputed by the assessing officer - Accordingly, considering the fact that deposits by each of the individual lenders were less than ₹ 20,000 coupled with the fact that the assessee has been able to establish their identity, we are of the view that source of cash deposits also stands substantiated. Accordingly, ground number 1 to 3 of the assessee’s appeal are allowed. Set off of loss from derivative transactions against income declared by the assessee in the return of income - assessee has submitted that both the quantification and genuineness of the aforesaid loss from derivative transactions are not in dispute - assessee, due to oversight could not claim the above loss either before the AO or the Ld. CIT(Appeals) and has relied on various judicial precedents in support of his contention that “additional claim” can be raised at any stage before “appellate authorities” - HELD THAT:- We are in agreement with the contention of the assessee that a legally valid claim can be made by the assessee even before the appellate authorities. Therefore, in the interests of justice, we are restoring the matter to the file of the AO only in respect of the additional grounds of appeal in respect of claim of set off of loss incurred in “derivative transactions” against income declared in the return of income filed by the assessee, with a direction to verify the claim of the assessee in respect of this ground, since the revenue authorities did not have any opportunity to verify the aforesaid claim of the assessee at any prior stage. In the result, the additional ground of appeal of the assessee is allowed for statistical purposes.
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