NARESH JAIN,KOLKATA vs. I.T.O.,WARD-31(4), KOLKATA

The present appeal has been preferred by the assessee against the order dated 15.03.2019 of the Commissioner of Income Tax (Appeals)-09, Kolkata [hereinafter referred to as ‘CIT(A)’].

The assessee in this appeal has taken the following grounds of appeal: “1. For that the Ld. CIT (A) erred in dismissing the appeal of the appellant on the alleged grounds.

The sole issue raised in this appeal of the assessee is regarding the verification of commodity profits of ₹2,09,400/- shown by the assessee in his return of income. The Assessing Officer (in short the ‘AO’) to verify the genuineness of the transaction, issued notice to the National Multi Commodity Exchange of India Ltd. (in short ‘NMCE’) as well as to the brokers M/s. Little Star Commodities Pvt. Ltd. and Dignity Logistic Services Pvt. Ltd. Though, the NMCE responded to the notice stating that the assessee was not registered as a client under any of their exchange, however, no reply was received from the brokers. The ld. AO added the aforesaid amount of ₹2,09,400/- treating the same as income from undisclosed sources observing that the assessee had failed to prove the genuineness of the aforesaid commodity profits shown by him. On appeal, the ld. CIT(A) confirmed the addition so made by the AO.

Before this Tribunal, the ld. Counsel for the assessee has submitted that, in fact, brokers are the client of the NMCE and therefore the information supplied by the NMCE was not relevant to decide about the genuineness of the transaction. Though the concerned brokers at that time did not respond to the notice of the AO, however, the assessee now has got confirmation of the transaction from said brokers. The ld. Counsel has further submitted that merely because the brokers did not give response to the notice issued by the AO, no fault can be attributed in this respect on the part of the assessee. That the assessee has already furnished the relevant evidences such as contract note and statement of accounts. The ld. Counsel has further submitted that the matter may be remanded to the AO for verification of the genuineness of the transaction. The ld. D/R had not objected to the same.

In view of this, the impugned order of the ld. CIT(A) is set aside and the matter is remanded to the AO for decision afresh on this issue. Needless to say, that the AO will give appropriate opportunity to the assessee to present his case.

The appeal of the assessee is treated as allowed for statistical purposes. Order is pronounced in the open court on 01.09.2021. Sd/- [Sanjay Garg] Judicial Member Dated: 01.09.2021 Bidhan (P.S.)