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TMI Blog2018 (4) TMI 425X X X X Extracts X X X X X X X X Extracts X X X X ..... . 468.35 lakhs c) Loss on trading of shares disallowed : Rs. 377.74 lakhs d) Loss on futures and options disallowed : Rs. 115.18 lakhs 2. Facts relating to the case are discussed in brief. The assessee is engaged in the business of share trading through its proprietary concerns named M/s. S.V. Sardesai and M/s. Gifts & Novelties Impex. During the year under consideration, the assessee declared loss of Rs. 45.23 lakhs in the original return of income, which was revised to a loss of Rs. 422.98 lakhs in the revised return of income. The Assessing Officer completed the assessment by making additions listed above, which were also confirmed by the learned CIT(A). 3. Aggrieved, the assessee has filed this appeal before us. 4. We notice t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alal Batra and hence the assessee did not have direct contact with any of the investors. Due to stock market turmoil, price of all the shares purchased under the arrangement with Mr. Jalal Batra fall steeply and hence the assessee was constrained to incur a huge loss. Thereafter, the assessee could not establish contact with Mr. Jalal Batra or any of its associates. Hence, the assessee squared up the above said loan by transferring a portion of loss incurred by him, which was equivalent to the amount of loan. However, assessee could not furnish any evidence/material to support the above said explanations. Hence, the learned CIT(A) confirmed the addition made u/s. 68 of the Act and also confirmed the rejection of the claim of loss in the han ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing the amount of Rs. 468.35 lakhs as unexplained cash credit. We notice that the assessing officer has assessed the same separately without specifying any head of income. In our view, the same may be assessed as income from other sources and the provisions of the Act may be applied accordingly. 10. The next issue relates to the claim for deduction of loss on trading of shares that was transferred to the account of portfolio loan creditors. Admittedly, the assessee has carried on the share trading transactions and incurred loss. The fact remains that the assessee could not prove the claim of receipt of funds under portfolio investment scheme and in the preceding paragraphs; we have confirmed the addition made u/s 68 of the Act. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apoor (Rs. 95.62 lakhs). The assessee submitted that he has given advances to these two parties for undertaking trading in certain shares and ultimately they incurred loss. It was submitted that it is the assessee who has to bear loss, since he has carried out trading transaction through these two persons. The Assessing Officer did not accept the said contention of the assessee. Since loss has been incurred by two different persons, the Assessing Officer held that such loss cannot be claimed by the assessee. Accordingly, he disallowed the claim of Rs. 377.74 lakhs. The learned CIT(A) also confirmed the same. 12. We have heard the parties on this issue and perused the record. The Learned AR contended that the assessee himself has carried ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hem, the Assessing Officer held that the above said loss is not allowable in the hands of the assessee. Accordingly, he disallowed the claim of Rs. 115.18 lakhs arising on futures and options trading. The learned CIT(A) also confirmed the same. 16. We have heard the parties on this issue and perused the record. Admittedly the assessee has furnished copies of contract notes and ledger account copies of respective brokers before the Assessing Officer. We noticed that the Assessing Officer did not find fault with them and did not raise any doubt about the genuineness of those documents. Under these set of facts, we are of the view that the Assessing Officer was not justified in rejecting the claim of loss trading on futures and options only f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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