AO cannot treat commodity losses as bogus merely because broker was expelled from commodity exchange

Principal CIT Vs Ms Blb Cables And Conductors Pvt. Ltd. (Calcutta High Court)

Assessee has incurred losses from the off market commodity transactions and the AO held such loss as bogus and inadmissible in the eyes of the law. The same loss was also confirmed by the ld. CIT(A). However we find that all the transactions through the broker were duly recorded in the books of the assessee. The broker has also declared in its books of accounts and offered for taxation. In our view to hold a transaction as bogus, there has to be s

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