TMI Blog2020 (2) TMI 889X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer may obtain directly from the broker by using his powers u/s 133(6) of the Act. Assessing Officer has not made any independent enquiry from M/s Lazara Commodities Pvt Ltd and disallowed the claim of loss solely on the statement given by Shri Vikas Kumar Agarwal, some entry provider based in Kolkata. Assessing Officer should have made enquiry directly from M/s Lazara Commodities Pvt Ltd. Therefore, in the interest of justice and fair play, we restore this issue to the file of the Assessing Officer. Ground No. 1 allowed for statistical purposes. Disallowance of short term capital loss - sale of shares - HELD THAT:- The fact that the shares were sold to the mother of the assessee, raises a suspicion on the genuinen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as claimed out of trading loss of ₹ 3 crores as incurred during the year by the assessee in commodity trading. 3. Second grievance relates to disallowance of short term capital loss of ₹ 2.43 crores. 4. Briefly stated, the facts of the case are that return of income for the year under consideration was E-filed on 18.10.2016, which was processed u/s 143(1) of the Income tax Act, 1961 [hereinafter referred to as 'The Act' for short]. Subsequently, the return was selected for scrutiny assessment through CASS and, accordingly, statutory notices were issued and served upon the assessee. 5. During the course of scrutiny assessment proceedings, the Assessing Officer noticed that the assessee has claimed loss due ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sal of the details furnished by the assessee and on gathering further information from public domain, the Assessing Officer found that M/s Lazara Commodities Pvt Ltd has not filed its financial returns and its registered address is same as registered address of many companies held by Shri Vikas Kumar Agarwal. The Assessing Officer came to the conclusion that M/s Lazara Commodities Pvt Ltd has provided accommodation entries and the assessee is one of the beneficiaries and accordingly, added back the entire loss of ₹ 3 crores. 9. Subsequently, by a rectification order u/s 154 of the Act, the Assessing Officer rectified a mistake apparent from record and disallowed the loss of ₹ 63,76,709/-. 10. The assessee carried the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bogus on the strength of the statement of Shri Vikas Kumar Agarwal. We find that vide reply dated 25.12.2018, which is placed at pages 83-84 of the paper book, while submitting the financial and tax details of M/s Lazara Commodities Pvt Ltd, the assessee had made a specific mention that if any direct confirmation from the broker is required for the transactions done with it, the Assessing Officer may obtain directly from the broker by using his powers u/s 133(6) of the Act. 15. We find that the Assessing Officer has not made any independent enquiry from M/s Lazara Commodities Pvt Ltd and disallowed the claim of loss solely on the statement given by Shri Vikas Kumar Agarwal, some entry provider based in Kolkata. We are of the considere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .12.2015, and that too, to the mother of the assessee himself. According to the Assessing Officer, this was a colourable transaction to claim short term capital loss to be set off against the long term capital gain. Accordingly, the loss was disallowed, which was confirmed by the ld. CIT(A). 19. Before the ld. CIT(A), the ld. counsel for the assessee stated that the fair market value of the share price of Get Info Systems Pvt Ltd as on 31.03.2015 is supported by valuation report which has been simply discarded by the lower authorities. It is the say of the ld. counsel for the assessee that the valuation is based upon Rule 11UA of the IT Rules, 1962. 20. Per contra, the ld. DR supported the findings of the Assessing Officer and rei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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