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2015 (6) TMI 637 - AT - Income TaxDisallowance of speculation loss from trading in gold bullions - CIT(A) deleted disallowance admitting additional evidence - Held that:- If a person purchases any item and then sold the same in both situations, there is a physical delivery is taken and given. It is also noted that the parties from whom the dealing in gold was made like Shri Rakesh Patel of Jorss Bullions, Pushpak Bullions and R.S. Bullions were produced before the Assessing Officer, who accepted the transactions as has been discussed even in the assessment order. All the parties confirmed the transaction and none of the parties ever denied about physical delivery. Assessee also produced the records along with challans (delivery note) which clearly shows that the gold was traded. Even the ld. Assessing Officer did not point out any defects in the challans, therefore, the conclusion of the ld. Assessing Officer that there was no physical transaction is without any basis. It is also noted that the assessee paid VAT on the turnover, which is applicable to delivery based trading. The totality of facts clearly indicates that the assessee in fact transacted in gold and bullions in the normal course of business to earn profit. No prudent businessman will intentionally incur losses. Even otherwise, all the payments are through banking channel; therefore, we find no infirmity in the conclusion drawn by the ld. Commissioner of Income Tax (Appeals). - Decided against revenue. Disallowance of expenses on account of trading in gold - CIT(A) deleted disallowance - Held that:- While deliberating upon ground no.1 and the conclusion drawn in the impugned order, we find that these are normal business expenses, consequently, the stand of the ld. Commissioner of Income Tax (Appeals) is affirmed, more specifically, when there is no basis for making such disallowance and even otherwise, the ad-hoc disallowance, if any, under the facts, is not permissible.- Decided against revenue.
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