TMI Blog2007 (3) TMI 813X X X X Extracts X X X X X X X X Extracts X X X X ..... substantial questions of law:- i) Whether on the facts and circumstances of the case, the findings of the ITAT that profits derived by 21 different persons from trading done by them through commission agency of assessee-appellant is income of the assessee itself, are perverse, based on frivolous grounds and without any legal basis and therefore not sustainable in the eyes of law? AND If the answer to question No.(i) is in affirmative (ii) Whether the amount of ₹ 306802/- added to the income of assessee is liable to be deleted? Briefly the facts, are that for the assessment year in question, the assessee filed his return of income on June 28, 1988 declaring his income at ₹ 91, 200/-. The assessee firm is engag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vidence placed on record as well as the orders of authorities below. The undisputed facts of the case are that the assessee claimed to have entered into these transactions on behalf of third parties. But one of the transactions was entered in the 'Sauda Bahi' and purchase and sale bills were also in the name of the assessee. No physical delivery of the goods was either given or taken. The goods were not transferred to the parties in the books of account of the assessee. The transactions of purchase and sale took place by and large, on the same date. In most of the cases assessee had not received any advance against the purchases shown in their names. In some cases advance of a very nominal amount of ₹ 1000/- and 5000/- had bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... solitary speculative transaction. In this context the High Court held that mere fact transaction was not entered in 'Sauda Bahi' would not mean that transaction was not genuine. But these are not the facts of the case as the assessee has not been able to lead any evidence in support of the contention that these transactions had been entered on behalf of others. The facts are glaring and obvious which show that these were collusive arrangements to reduce the incidence of tax by the assessee. xxx xxx xxx 6.3To sum up, the plea of the assessee that this being speculation profit, the assessee should be allowed to adjust the speculation loss alone is accepted. In the result, the ground of appeal is partly allowed. Learned cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... possible on re-appreciation of evidence on record in preference to view taken by the Tribunal, we are unable to hold that the view expressed by the Tribunal was not possible view. The findings recorded are based on evidence and could not be regarded as perverse. In the appellate jurisdiction under Section 260-A of the Act, the appeal can be entertained only on a substantial question of law. No doubt perversity in the findings of the Tribunal would amount to substantial question of law but learned counsel for the assessee has failed to point out any material on record which could impell this Court to hold that the view expressed by the Tribunal was not at all possible. Accordingly, we do not find any merit in the present appeal and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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