TMI Blog2018 (11) TMI 939X X X X Extracts X X X X X X X X Extracts X X X X ..... course of action would be to remit the matter back to the AO for fresh examination on this aspect - the protracted litigation requires to be avoided in view of the tangible evidence placed on behalf of the assessee and lapse committed by Revenue. Therefore, the additions under s.68 requires to be deleted. We direct the AO to do so. Addition of transaction charges of NMCX - Held that:- The claim of the assessee that transaction charges paid to National Multi Commodity Exchange of India (NMCE) requires to be allowed as ordinary business expenditure in the course of commodity trading carries good deal of force. The expense incurred is clearly in the course of commodity business and thus, the assessee is entitled to claim such expenditure as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mber and all other relevant information on the ground that said Mr. Natwarbhai Ganpatbhai Vanzara denied to have any bank account. The learned AR for the assessee referred to a copy of cheque dated 10.11.2009 issued by the creditor amounting to ₹ 12,12,282/- which clearly rebuts the assertions made by the creditor. The AO has failed to grant cross examination despite request in this behalf. It was thus contended that the additions made under s.68 of the Act in violation of natural justice is clearly not sustainable in law. As regards the disallowance of transaction charges, the learned AR submitted that the expenses have been incurred in the course of commodity trading on the platform of the exchange and therefore, there was no warran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is decided in its favour. 8. The second issue pertains to allowability of transaction charges. The claim of the assessee that transaction charges paid to National Multi Commodity Exchange of India (NMCE) requires to be allowed as ordinary business expenditure in the course of commodity trading carries good deal of force. The expense incurred is clearly in the course of commodity business and thus, the assessee is entitled to claim such expenditure as business expenditure . The action of the Revenue authorities is accordingly set aside and impugned transaction charges amounting to ₹ 24,67,435/- is allowed. 9. In the result, appeal of the assessee is allowed. This Order pronounced in Open Court on 14/11/2018 - - TaxTMI - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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