TMI Blog2011 (3) TMI 1699X X X X Extracts X X X X X X X X Extracts X X X X ..... d by delivery and vyaj badla, respectively, on the basis that the transactions are not genuine in nature. The appellant contend that on the facts and in the circumstances of the case and in law, the observations of the CIT(A) in upholding the action of the Assessing Officer in not allowing the impugned loss arisen on transactions carried out in the pursuit of business, are erroneous, baseless and contrary to the provisions of law. The CIT(A) ought to have allowed the impugned loss arisen on transactions carried out in the pursuit of business. 2. The CIT(A) erred in upholding the action of the Assessing Officer in making an addition of a sum of ₹ 31,21,932 under section 41(1) of the Act on the ground that the liability has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trading activity has been accepted in the aforesaid assessment and also in the past. Further it was also submitted that majority of the speculative transactions are not with the sister concerns. He referred to the statement showing analysis of trades executed on exchanges and principle to principle trade during the relevant period and submitted that 99.28% of the trade transactions have been executed on exchange and on the transactions with associate concerns there was no loss but profit. He countered all the arguments of the A.O. and submitted that the assessee has produced bank statements in original during the course of assessment proceedings and they have submitted all primary documents before the issue of various show cause notices but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion that the A.O. should examine the nature of the transaction undertaken by the assessee without getting affected/persuaded by the observations of the SEBI and JPC, unless they are applicable to the facts in assessee case. It is also brought to our notice that there was special audit conducted of assessee s transactions and the report was not placed on record. The A.O. is directed to consider the issues afresh in the light of the facts on record and needless to say that the assessee should be given opportunity before deciding the issues. For this purpose the orders of the A.O. and CIT(A) on this issue are set aside and the assessment is restored back to the A.O. to consider it afresh after examining the facts and according to the law. 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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