9911796707
TMI Blog2016 (11) TMI 713X X X X Extracts X X X X X X X X Extracts X X X X ..... following substantial questions of law : "A. Whether under the facts and circumstances of the case, the Income-tax Appellate Tribunal is not justified in confirming the part of commodity loss of Rs. 4,20,824 out of Rs. 7,16,617 (annexure A.7) arising from genuine and regular dealings all through account payee cheques (annexure A.8) and for which contract notes/difference in bills produced with registered broker M/s. Anand Commodities Trading Services Pvt. Limited (annexure A.7) whom the Assessing Officer failed to summon as requested by the appellant that the Assessing Officer to summon the said representative under section 131 of the Income-tax Act, 1961 which is against trite law that in case on the request of the assessee the Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eturn of income for the assessment year 2006-07 declaring income at Rs. 19,26,586. He is dealing in equity and derivatives trading for his clients and for himself as proprietor of M/s. SMS and Co. The commodities trading was done by the appellant through M/s. Anand Commodities Services limited during the assessment year 2006-07 from May 2, 2005 to February 24, 2006 and also in various other years. He used to deal through other brokers also. The appellant received notice under section 143(2) of the Act in response to which he appeared and submitted reply. During the assessment proceedings, the Assessing Officer raised objection regarding trading liability amounting to Rs. 3,95,614 which was later on deleted by the Tribunal and also regarding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... genuineness of the alleged commodity transactions made by the assessee, a letter dated April 3, 2013 was written by the Commissioner of Income-tax (Appeals) to the manager, LSE Commodities Trading Services Limited. However, Ludhiana Commodities Trading Services Limited in reply dated April 8, 2013 intimated that no client as M/s. SMS and Company as a client of M/s. Anand Commodities Services Limited in the year 2005-06 was existing. After considering the reply dated August 30, 2013, the appellant was directed to present authorized representative of M/s. Anand Commodities Trading Services Pvt. Limited for cross examination. The appellant requested for summoning of the concerned persons under section 131 of the Act. However, no action was tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d from Ludhiana Stock Exchange and confronted to the assessee proved that the commodity transaction was not actually carried out but was merely accommodation entries. Further, Ludhiana Commodities Trading Services Limited in reply dated April 8, 2013 to the query dated April 3, 2013 by the Commissioner of Income-tax (Appeals) intimated that M/s. SMS and Company Prop. Shri Sham Sunder Khanna was not registered as a client with M/s. Anand Commodities Services Limited in the year 2015-16. The assessee-appellant was prima facie required to prove the validity of the transaction. The assessee having failed to do so, no right accrues in his favour on account of non- summoning of the witness under section 131 of the Act by the Assessing Officer. It ..... X X X X Extracts X X X X X X X X Extracts X X X X
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