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TMI Blog2020 (2) TMI 1348X X X X Extracts X X X X X X X X Extracts X X X X ..... (s) perused. 2. The assessee's sole substantive grievance raised in the instant appeal seeks to reverse both the lower authorities' action treating its currency derivative loss of Rs.30,48,249/- as bogus unexplained cash credits based on search statement of Shri Sahet Saraf; one of the director in M/s Marigold Vanijya Pvt.Ltd. (registered commodity broker) that it had been providing accommodation entry of loss by way of currency derivative transactions. Learned departmental representative's case is that both the lower authorities have been rightly disallowed the assessee's currency derivative loss since suffering from lack of genuineness and creditworthiness in viw of the overwhelming evidence collected during the course of foregoing searc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee requested to treat the return originally filed on 08-08-11, as a return filed in response to notice issued u/s. 148 of the Act. The AO further issued notices u/s. 143(2) and 142(1) of the Act and in response to which, the AR of the assessee appeared. For verification of transaction notice u/s. 133(6) of the Act was issued to MCX, Mumbai and assessee was also asked to clarify the alleged loss of Rs. 43,90,251/-. It failed to do so. Therefore, AO added back the sum of Rs. 43,90,251/- as unexplained loss by his order dt. 31-03-2015 passed u/s. 147/143(3). 6. The assessee challenged the above order of AO before the CIT-A and contended that the said transaction was online through MCX Stock Exchange by its broker, M/s. Marigold Vanijya Pvt. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was satisfied that the assessee submitted all the required details in support of its transaction/claim. The CIT-A held that the AO did not place on record any cogent and factual or palpable material/evidence in support of his view and therefore, deleted the said addition made by the AO by observing as under:- '4.2 I have considered the submission of the AR of the appellant as well as the case laws referred to in his submission. I find that the appellant has incurred loss of Rs. 43,90,251/- on account of dealing in foreign exchange derivatives. The assessment in the instant case was reopened by the AO based on information received by the AO of Marigold Vanijya (P) Ltd. Mr. Shri Sachet Saraft, one of the Directors of Marigold Vanijya (P) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scharged its initial onus by furnishing all the requisite details in respect of foreign exchange loss incurred by it. It is not the case of the AO that the appellant has failed to furnish documentary evidences in support of the said foreign currency loss. Thus, considering the entire facts and circumstances of the issue at hand in the backdrop of the various case laws cited in the submission supra and in the absence of any cogent finding or corroborative materials brought on record by the AO to substantiate his stand in subverting the submission of the appellant on the impugned matter at the assessment stage. I do not find any merit in the action of the AO in making the impugned disallowance of Rs. 43,90,251/- as unexplained loss with regar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all the details regarding the said transactions. The AO after examining the same, has high handedly held that the claim of assessee is bogus and therefore, added the impugned amount, which is not at all justified. The ld.AR of the assessee supported the order of the CIT-A and prayed to dismiss the grounds raised by the revenue in the appeal. 10. Heard rival submissions and perused the material on record. We find that the AO issued notice u/s. 133(6) of the Act to MCX Stock Exchange, Mumbai. Admittedly the said stock exchange complied with the notice issued by the AO along with supplying various details in respect of said transaction. According to AO, it is incomplete details. However, the CIT-A noted in his order that the AO failed to ver ..... X X X X Extracts X X X X X X X X Extracts X X X X
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