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2022 (8) TMI 629 - HC - Income TaxRevision u/s 263 - assessee had claimed losses on account of commodities - Transaction in question involved settlement otherwise than the actual delivery or transfer of any commodity - Tribunal allowed assessee appeal - HELD THAT:- Fundamental error has been committed by the PCIT by proceeding based upon certain alleged facts which were never brought on record at the time of issuance of the show cause notice. When the matter was carried on appeal to the tribunal, the tribunal examined the documents and found that the transaction done by the assessee was an eligible transaction in respect of trading in derivatives and that M/s. Godavari Exim Pvt. Ltd. was registered with MCX Stock Exchange which was a notified stock exchange. Since PCIT had travelled beyond what was the allegation in the show cause notice, the tribunal had to clarify the factual position. Therefore, a query has been raised to the learned Advocate who appeared for the assessee before the tribunal and it was submitted that after passing order u/s 263 Ld. Advocate had made enquiries in the stock exchange and found that the said M/s. Godavari Exim Pvt. Ltd. had surrendered its membership of MCX Stock Exchange and after surrendering the same it was engaged in transport business.' Assessee has produced before us a copy of the circular dated 8th September, 2016 which is a public notification of resignation of membership and the name of the said M/s. Godavari Exim Pvt. Ltd. finds place where they have sought to surrender their membership. Last of the transaction done by the said company was on 30th March, 2016. After issuing the notification and giving sufficient time for any objection to be received, and in the absence of any objection by circular dated 11th January, 2017, the resignation/surrender of membership in the currency derivatives of M/s. Godavari Exim Pvt. Ltd. was accepted and SEBI has also cancelled the certificate of registration for the member and they have ceased to be a member of MCX Stock Exchange. These documents which were noted by the tribunal would also ensure in favour of the respondent/assessee.
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