| COURT: | Calcutta High Court |
| CORAM: | Amitabha Chatterjee J, Aniruddha Bose J |
| SECTION(S): | 37(1), 68 |
| GENRE: | Domestic Tax |
| CATCH WORDS: | bogus capital gains, bogus expenditure, Bogus purchases, Bogus Sales |
| COUNSEL: | Sourabh Bagharia |
| DATE: | June 19, 2018 (Date of pronouncement) |
| DATE: | February 23, 2019 (Date of publication) |
| AY: | 2009-10 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 68 Bogus transactions: The AO cannot treat losses from off market commodity transactions as bogus and inadmissible in the eyes of the law if the transactions through the broker are duly recorded in the books of the assessee. The broker has also declared in its books of accounts and offered for taxation. To hold a transaction as bogus, there has to be some concrete evidence where the transactions cannot be proved with the supportive evidence. The fact that the broker was expelled from the commodity exchange cannot be the criteria to hold the transaction as bogus | |
To hold a transaction as bogus, there has to be some concrete evidence where the transactions cannot be proved with the supportive evidence. Here in the case the transactions of the commodity exchanged have not only been explained but also substantiated from the confirmation of the party. Both the parties are confirming the transactions which have been duly supported with the books of accounts and bank transactions. The ld. AR has also submitted the board resolution for the trading of commodity transaction. The broker was expelled from the commodity exchange cannot be the criteria to hold the transaction as bogus
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