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Facts
The assessee claimed a substantial business loss of Rs. 26,88,98,500/- from commodity trading on contract settlement. The Assessing Officer (AO) and the Commissioner of Income-tax (Appeals) [CIT(A)] found the transactions to be non-genuine and bogus, thus disallowing the loss.
Held
The Tribunal held that the transactions were not genuine business transactions and were entered into to create an artificial loss to evade taxes. The alleged loss was treated as a sham and non-genuine loss, and thus not allowable. The appeal was dismissed.
Key Issues
Whether the loss claimed from commodity contract settlement is a genuine business loss or a speculative/bogus loss created to evade tax.
Sections Cited
143(3), 43(5), 73(1)
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Income Tax Appellate Tribunal, “F’ BENCH
आदेश की �ितिलिप अ�ेिषत आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : अपीलाथ� / The Appellant 1. / The Appellant ��थ� / The Respondent. 2. / The Respondent. आयकर आयु� / CIT 3. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण DR, ITAT, 4. Mumbai गाड� फाईल / Guard file. 5.
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