ACIT,CENTRAL-1, INDORE vs. M/S ESSENCE COMMODITIES P LTD, INDORE
What did the Tribunal hold?
The Tribunal held that the CIT(A) was correct in deleting the disallowance. The assessee had provided evidence of genuine business transactions, incurred losses on similar commodities on other exchanges, and the AO failed to provide cogent evidence to prove the losses were bogus.
What were the facts?
The Revenue appealed against the CIT(A)'s deletion of disallowance of losses claimed by the assessee on commodity trades. The Assessing Officer (AO) alleged these losses were contrived and incurred through synchronized trades on the NMCE platform to reduce taxable income.
What were the issues?
Whether losses incurred on commodity trades were genuine business losses or contrived to evade tax. Whether the AO provided sufficient evidence to disprove the genuineness of the losses.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Cases cited in this judgment(4)Show listHide list
Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.
- Apollo Tyres Ltd. v. CIT657 citing255 ITR 273 · 2002 · SC · Read judgment
- CIT v. Value Capital Services (P) Ltd.216 citing307 ITR 334 · 2008 · HC · Read judgment
- Malayala Manorama Co. Ltd. v. CIT37 citing300 ITR 251 · 2008 · SC · Read judgment
- 5 citing
Income Tax Appellate Tribunal, INDORE BENCHES “DB”: INDORE
Before: SHRI CHANDRA MOHAN GARG & SHRI BHAGIRATH MAL BIYANI
PER CHANDRA MOHAN GARG, J.M.
The above captioned appeals have been filed by the Revenue against the Orders of the Ld. CIT(A)-3, Bhopal,
dated 26.03.2019 A.Y. 2011-12, dated 12.02.2020 for AY
2013-14 an
The order continues below.
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