TMI Blog2015 (10) TMI 1470X X X X Extracts X X X X X X X X Extracts X X X X ..... respective invoices. The transactions have also been confirmed by the respective parties. However, at the same time we find that the impugned transactions have not been verified by the AO from the respective parties which is a clear distinguishing factor from the facts of the decision relied upon in the case of Mobile Trading & Investment Pvt. Ltd. (2015 (6) TMI 637 - ITAT MUMBAI). In that case the parties were produced before the AO . We also find that in that case the AO has issued summons u/s. 131 of the Act to the dealers from whom the assessee claimed to have purchases and sales, such investigations are not made in the present case. Therefore, in the interest of justice and fair play, we restore this issue to the file of the AO. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was 'speculation loss' and consequently, the same was not eligible for set off against the business income of the appellant. 3.2. It is submitted that in the facts and the circumstances of the case and in law no such action was called for and the loss of ₹ 2.61 crores was required to be held as fully allowable as normal business loss. 4. The assessee is dealing in commodities and providing consultancy in prospecting of Minerals. The return was selected for scrutiny under CASS. Accordingly, statutory notices were issued and served upon the assessee. While scrutinizing the return of income qua the books of account, the Assessing Officer observed that in the gold trading account, the assessee company has purchased 1419 K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfact the First Appellate Authority allowed an opportunity to the assessee to explain why the transaction should not be treated as speculative in nature. The Ld. CIT(A) observed that no evidence whatsoever was furnished as to how and when the delivery was taken. The Ld. CIT(A) finally concluded by dismissing the appeal and holding that the loss of ₹ 2.61 crores is a speculative loss. 6. Aggrieved by this, the assessee is before us. 7. The Ld. Counsel for the assessee reiterated what has been stated before the lower authorities. The Ld. Counsel further drew our attention to the relevant documentary evidences filed before us in the form of a Paper Book. The Ld. Counsel further referred to the relevant purchase invoices and sale in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nguishing factor from the facts of the decision relied upon by the Ld. Counsel in the case of Mobile Trading Investment Pvt. Ltd. (supra). In that case the parties were produced before the AO as mentioned at page-8 of the order of the Tribunal. We also find that in that case the AO has issued summons u/s. 131 of the Act to the dealers from whom the assessee claimed to have purchases and sales, such investigations are not made in the present case. Therefore, in the interest of justice and fair play, we restore this issue to the file of the AO. The AO is directed to verify the impugned transactions from the respective parties by making verifications from their end as per the provisions of the law. The AO is also directed to verify whether t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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