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2023 (6) TMI 1267 - ITAT SURATAddition on account of profit from future & options - assessee has failed to tender evidence and explanation in this regard - assessee has stated that the figure mentioned in his ledger with regard to individual share brokers and that ascertained in the SCN are different and imaginary - CIT-A deleted the addition as AO 's working of net gain from the brokers gain/loss statement is misleading figure and not the actual profits - HELD THAT:- The main reason for discrepancies as analysed by the CIT(A) and noted by CIT(A) that in the working profits from Motilal Oswal Sec. Ltd., all the transactional value of F & O rolled over was misread as profits by the AO - Once this column of rolled over F & O transaction are considered properly, the assessee’s profit working was found to be correct. Similarly, in the case of Jainam Share, the share trading and commodity trading transactions were added with F & O transactions leading to incorrect loss figure. CIT(A) held that the difference in profits worked out by the AO from Future & Option transactions are incorrect and not sustainable. Thus, the addition was deleted and only addition pertaining to incorrect loss computation by the assessee was confirmed by ld CIT(A). There is no infirmity in the order passed by ld CIT(A). Grounds of appeal of the Revenue are dismissed. Unexplained increase in capital - CIT(A) deleted the addition as held that the capital accumulation was fully explained by assessee on the basis of capital in the Income Tax Return and accumulated incomes duly shown in the return of income - HELD THAT:- The assessee has furnished summary of capital balance starting from AY 2011-12 taking capital as on 31.03.2011 and duly explained capital accumulation till current assessment year. CIT(A) after considering submissions and explanations of the assessee, observed that the capital accumulation was fully explained by the assessee on the basis of capital in the Income Tax Return of assessment year 2011-12 and accumulated incomes duly shown in the return of income for assessment years 2012-13, 2013- 14, 2014-15 and current assessment year. In the remand report on this issue, the Assessing Officer has not given any adverse comments, therefore CIT(A) held that the addition is not sustainable in the eye of law and deleted the addition. We have gone through the above findings of ld CIT(A) and noted that conclusions arrived at by the CIT(A) are correct and admit no interference by us. We, approve and confirm the order of the CIT(A) and dismiss ground No.2 raised by the Revenue. Addition of investments in Future & Option and equities - CIT-A deleted the addition - HELD THAT:- No concrete findings of defects in assessee’s submission could be pointed out by the assessing officer. AO had accepted the withdrawals from firms and bank transfers upto Rs. 62,95,655/-and adding the profits on F&O, STCG, LTCG and other profits duly adds upto investments of Rs. 1,49,96,114/-. Thus, assessee’s explanation of source of fund for Rs. 1,49,65,879/- was found to be duly explained. Hence, CIT(A), based on the above facts, held that there is no case for sustaining addition as unexplained investment, therefore CIT(A) deleted the same. As gone through the above findings of CIT(A) and noted that conclusion reached by ld CIT(A) is correct therefore we agree with the findings of ld CIT(A) and dismiss ground No.3 raised by the revenue.
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