Disallowance on alleged fictitious loss without incriminating material cannot be sustained

DCIT Vs Jainam Investments (ITAT Mumbai) ITAT Mumbai held that disallowance on account alleged fictitious trading loss in absence of any direct incriminating material is not sustainable. Accordingly, CIT(A) rightly deleted the disallowance and allowed the appeal of the assessee. Thus, the present appeal by revenue is dismissed. Facts- The assessee, a partnership firm, has been carrying on the business of trading in shares, derivatives and futures & options for several years. Post scrutiny assessment, AO recorded reasons to believe that income chargeable to tax had escaped assessment and, ...