DHARMDEEP COMMODITIES PVT. LTD.,AHMEDABAD vs. THE DY.CIT, CIRCLE-1(1)(1), AHMEDABAD

आदेश/ORDER

Per Suchitra Kamble, Judicial Member:

are as under:-

1. The learned CIT(A) has erred in law and on facts of the case in confirming action of ld. AO of reopening the assessment u/s. 147 of the Act. Under the facts and circumstances of the Dharmdeep Commodities Pvt. Ltd. , A.Y. 2013-14 case, the action of reopening is without jurisdiction and in not permissible either in law or on facts.

2. The learned CIT(A) has erred in law and on facts of the case in confirming action of ld. AO in making addition of purchase as well as sale transactions aggregating to Rs. 3,90,09,960/- carried on NSEL. u/s. 68 of the Act only on the basis of surmises and conjectures without any corroborative evidence.

5. Both the lower authorities have erred in law and on facts of the case in confirming the addition without providing appellant with the opportunity to cross examine persons whose statements had been relied upon against the appellant.

6. Both the lower authorities have passed the orders without properly appreciating the facts and they further erred in grossly ignoring various submissions, explanations and information submitted by the appellant from time to time which ought to have been considered before passing the impugned order. The action of the lower authorities is in clear breach of law and Principles of Natural Justice and therefore deserves to be quashed.

7. The learned CIT(A) has erred in law and on facts of the case in confirming action of the ld. AO in levying interest u/s. 234A/B/C/D of the Act.

8. The learned CIT(A) has erred in law and on facts of the case in confirming action of the ld. AO in initiating penalty proceedings under Section 271(1)(c) of the Act.

Total tax effect Rs. 1,17,02,988/-”

Dharmdeep Commodities Pvt. Ltd. , A.Y. 2013-14 3. The assessee is trading in agricultural commodities mainly cotton bales and trading in future market currency and derivatives market. The assessee filed its return of income for A.Y. 2013-14 declaring total income of Rs. 97,81,460/-. The case of the assessee was selected for scrutiny. Assessment order u/s. 143(3) was passed on 29-02-2016 determining total income of Rs. 1,04,39,005/-. As per the information, the Assessing Officer observed that the transaction done by the assessee company with M/s Anand Rathi Commodities Ltd. with the original client Navratan Amla Gupta is that of buy amount to Rs. 1,93,38,000/- and total sale amount was Rs. 1,96,71,960/- totaling to Rs. 3,90,09,960/- during the year under consideration. The Assessing Officer observed that these transactions are not genuine and was not shown by the assessee. The Assessing Officer further observed that the assessee claimed bad debts of Rs. 1,63,855/- which is not allowable expenses. After recording the satisfaction and obtaining the approval from competent authority, the Assessing Officer issued notice u/s. 148 of the Act on 30-03-2021. In response to the notice u/s. 148 of the Act, the assessee company filed return of income on 06-12-2021. Notice u/s. 143(2) of the Act was issued on 14-12-2021 containing the reasons of reopening the case. The assessee company filed its objection vide letter dated 09-02-2022 in respect of reopening and the said objections were disposed of vide order dated 23-02-2022. The assessee company was asked vide notice u/s. 142(1) dated 23- 02-2022 to furnish its explanation along with supporting documents and evidences in respect of transactions of Rs. 10,12,01,220/- through Anand Rathi Commodities Pvt. Ltd. on account of Client Code Modification (CCM) as the same do not appear genuine. After taking into consideration the reply of Dharmdeep Commodities Pvt. Ltd. , A.Y. 2013-14 assessee, the Assessing Officer made the addition of Rs. 3,90,09,960/- as unexplained cash credits u/s. 68 of the Act.

4. Being Aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee.