Lakshmi Varaprasada Surendranath Sai Meka vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Lakshmi Varaprasada Surendranath Sai Meka, filed an appeal against the order of the Additional Commissioner of Income Tax (Appeals) for the Assessment Year 2015-16. The assessee, an individual deriving income from salary, e-filed his return of income on 24/02/2016 declaring an income of Rs. 9,43,810/-. The case was selected for limited scrutiny under CASS due to salary income mismatch and business in large value sale of futures (derivatives). The Assessing Officer observed that the assessee had made derivative (futures) transactions on a large scale and no income from the business was admitted. The assessee submitted that he suffered huge losses in the derivative transactions but did not show the loss in the computation of total income. The Assessing Officer added the amount of Rs. 15,75,352/- as undisclosed income and determined the assessed income at Rs. 25,19,162/-. The assessee appealed to the Commissioner of Income Tax (Appeals) but the appeal was dismissed ex-parte. The assessee then appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. The order of the Ld. Addl. CIT(A) is not correct either on facts or in law.
• 2. The Ld. Addl. CIT(A) is factually incorrect in stating that no evidences were filed and the order was passed without proper appreciation of facts and submissions.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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