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[Cites 48, Cited by 0]

Income Tax Appellate Tribunal - Indore

Essence Commodities Ltd., Indore vs Assessee on 29 July, 2013

          IN THE INCOME TAX APPELLATE TRIBUNAL,
                 INDORE BENCH, INDORE
BEFORE SHRI JOGINDER SINGH, J.M. AND SHRI R.C.SHARMA, A.M.

                    PAN NO. : AAACE3879L

              I.T(SS).A.Nos. 72 to 78/Ind/2012
                 A.Ys. : 2003-04 to 2009-10

ACIT,                            M/s. Essence Commodities
1(1),                     vs.    Ltd.,
Indore.                          630, Usha Nagar
                                 Extension,
                                 Indore

Appellant                        Respondent

            C.O.Nos. 24 to 26/Ind/2012 and 28/Ind/2012
          (Arising out of I.T(SS).A.Nos. 72, 76, 77 and
                          75/Ind/2012)
          A.Ys. : 2003-04, 2007-08, 2008-09 and 2006-07

M/s. Essence                     ACIT, 1(1),
Commodities Ltd.,          vs.   Indore.
630, Usha Nagar
Extension,
Indore

Cross Objector                   Respondent

              I.T(SS).A.Nos. 13 and 14/Ind/2012
                    A.Ys. : 2004-05 and 2005-06

M/s. Essence                     ACIT, 1(1),
Commodities Ltd.,          vs.   Indore.
630, Usha Nagar
Extension,
Indore
                              -: 2: -



     Department by     :    Smt. Mridula Bajpai, CIT DR
     Assessee by       :    Shri Prakash Jain, C. A.

     Date of Hearing   :          29.07.2013
     Date of           :          23.08.2013
     pronouncement

                             ORDER

PER R. C. SHARMA, A.M.

These are the appeals filed by the Revenue and assessee and cross objections by the assessee against the order of CIT(A) for the assessment years 2003-04 to 2009-10 in the matter of order passed u/s 153A read with Section 143(3) of the Income-tax Act, 1961.

2. Facts in brief are that a search u/s 132 was carried out t the assessee's premises on 02.05.2008. The assessee is a broker in commodity exchange. It has derived profit through transactions with various commodity exchanges such as Multi Commodity Exchange of India Limited (MCX) and National Board of Trade (N.B.O.T.) on its own behalf and also on behalf of its clients. As regards to its transactions in NBOT, it was observed that its clients name did not appear in the records of 2

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the exchange, and the entire trade through exchange was made in the name of the assessee. The profit derived through such transactions, however, was apportioned between the assessee and the clients. The officers of the Investigation Wing at the time of search and also the Assessing Officer at the time of assessment proceedings apprehended the diversion of profits by the assessee in the name of such clients. Therefore, the Assessing Officer asked the assessee to prove the genuineness of the transactions recorded in their own books of accounts in the name of various clients and thereby the transfer of profits to them. After examining the issue the Assessing Officer did not accept the assessee's version and Added the profit, which was transferred to the various clients, to the total income of the assessee.

3. By the impugned order, the ld. CIT(A) deleted the addition after having the following observations :-

"4.2.1 The facts of the case, as narrated in para 2 above, are that the assessee is a broker in commodity exchange. It has derived profit through transactions with various commodity exchanges such as Multi 3

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Commodity Exchange of India Ltd.(MCX), National Commodity & Derivative Exchange Ltd. (NCDS) and National board of Trade (NBOT) on its transactions in NBOT, it was observed that its clients name did not appear in the records of the exchange, and the entire trade through exchange was made in the name of the assessee. The profit derived through such transactions, however, was apportioned between the assessee and the clients. The officers of the Investigation wing at the time of search and also the assessing officer at the time of assessment proceedings apprehended the diversion of profits by the assessee in the name of such clients. Therefore, the A.O. asked the assessee to prove the genuineness of the transactions recorded in their own books of accounts in the name of various clients and thereby transferred profits t them. In the process, the assessee made a reference to the range head concerned (i.e. Addl. CIT Range 1, Indore seeking his direction to the A.O. to accept the assessee's version as regards to the profit transferred to such non- registered clients. 4
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After examining the issue, the range head further directed the A.O. to call for the name s and complete addresses of the clients, evidence in support of payment by the assessee in respect of profit (passed on to the clients), evidence in support of accounting of the said profit by those non-member clients and disclosure in their respective return of income.
4.2.2. In view of such directions of the Range head u/s 144A, the A.O. asked assessee to furnish evidence in support of identity of the clients (to whom profit was transferred) also with the evidence of recognition of corresponding income by such clients in their respective returns of income. In response thereof, the assessee furnished the copies of confirmations in respect of some of such clients, which were rather copies of ledger account as appearing in assessee's books on which signatures of those clients were obtained. The assessee had also contended before the A.O. that the funds had moved through banking channels by way of account 5
-: 6: -
payee cheques. In that regard the copies of relevant bank statements were also filed. But , the returns of income of the clients, which was asked for in support of recognition of the corresponding income by those clients, was not furnished. The A.O. was of the view that in absence of the relevant ITRs of those clients, the crucial factor relating to recognition of income by such clients could not be adjudged from the said bank statements. The assessee had also come forward with a plea that the brokerage charged by the assessee was duly offered in its return. The A.O. however did not find such plea to have any relevance with the issue of transfer of profits to the clients. In the facts of the case, the A.O. held that the assessee had failed to establish the passing of profit to the various clients and the disclosure of corresponding income by those clients in their respective returns and accordingly he added the entire profit, which was passed on to the various clients as per the assessee's books of accounts, to the total income of the assessee.
6
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4.2.3 During the appeal proceedings, detailed submissions have been made which have been reproduced in para 3 above. It has been pleaded that all the client are genuine and funds were transferred between the assessee and those clients through banking channels only; and that merely on account of failure for having registered those clients in the record of NBOT, the income of those clients cannot be added to its income . it is explained that assessee had also taken part in the speculative business through the other exchanges namely, MCX and NCDX and in accordance with the rules and regulations of those exchanges, it had got its clients (those who had done trading through the assessee broker in MCX and NCDX) registered in those exchanges; and no adverse view was taken as regards to the profits transferred to those clients. The assessee also accepted that as per the rules and regulations of NBOT, it was required to get its clients registered in that exchange also, but this was not done so by and large by all the brokers because the exchange 7
-: 8: -
(NBOT) did not enforce the registration; and the result was that though the name of clients (for whom the assessee had transacted i.e. sauda was effected in NBOT) did appear in its books of accounts but the same was not recorded in NBOT's records. For this reason, entire pay-in and pay-out in the NBOT was recorded in the name of the assessee only, whereas, the financial records of the assessee did reflect the corresponding transactions and the ledger accounts of all those clients.

It was pleaded that brokerage was duly charged on such transactions. During the proceedings, nevertheless, the assessee further collected the confirmations and / or ITRs of some of the clients in support of its claim that all its clients were genuine and the profit passed on to them were also reflected by them in their ITRs. It has been also submitted that inspite of their best effort, they could not collect the ITRs of all its clients for the reasons that most of the persons are hesitant to provide such documents. The assessee made a request to admit all those documents as additional 8

-: 9: -

evidence under rule 46A. The application of the assessee together with the enclosures (additional evidences) in this regard was sent to the A.O. vide this office letter dated 18.07.2011 and 08.11.2011 for his comments. A Copy of the written submissions was separately sent to the A.O. vide this office letter dated 18.07.2011 for his comments. However, so far no comments has been received either on the written submission or on the issue of admissibility of additional evidences under rule 46A. In its application, the assessee had taken plea that during the assessment proceedings, those confirmations, ITRs could not be received from the concerned clients inspite of its repeated request and as such the assessee was prevented by sufficient cause to furnish those documents before the A.O. I have considered the application so made by the assessee for admission of additional evidences. I find that these documents in the form of additional evidences were not in the possession of the assessee, rather they had to collect it from its 9
-: 10: -
clients; the assessee could collect these documents with lot of difficulty but after the completion of assessment. In view thereof, I agree with the assessee's plea that it was prevented by sufficient cause to furnish those documents before the A.O. Accordingly, I admit these documents as additional evidences. 4.2.4 Based on the confirmation/ ITRs furnished either before the A.O. or before me (as additional evidence), I had asked assessee to compile the relevant information such as name and address of the clients, PAN, the amount of profit/loss transferred to the client, the gross total income and the income from speculation business (i.e. NBOT profits) shown by the clients in their returns. The required compilation has been made by preparing three separate tables. The table-A contains the list of all the clients, their address, PAN and the amount of profit/ loss transferred by the assessee to those clients. The table-B contains the list of those clients for whom confirmation could be filed, whereas 10
-: 11: -
the table-C contains the list of the clients in respect of which confirmation and ITRs both were filed. The table- C also contains the information as regards to the gross total income and the income from speculation business shown by such clients in their returns. The information has been complied assessment year-wise. I have test checked the contents of these tables with reference to the confirmations / ITRs. The relevant tables are as under:
4. TABLE-A:
Complete List of all the client A.Y. 2003-04 Sl No. Name of the Address of the PAN of the client Profit to the Loss to the client client client client 1 Akash Agrawal P-2 Asharay AACPA5203F 198,400 Apartment Manoramaganj, Indore 2 Aliap Developers 14, Commercial AABCA8097R 750,500 Chamber, Satta Bazar, Behind Danapith, Rajkot 3 Allap Properties 14, Commercial AAPCA8096Q 351,100 Chamber, Satta Bazar, Behind 11
-: 12: -
Danapith, Rajkot 4 Anil Bhimwal 75, Kanchan 56,600 Bagh, Indore 5 Arco Enterprise 11, Udyama, 153 AACPT9378B 749,500 S.V. Road, Vile Parle (W) Mumbai 400056 6 Aruna Ashok Shamji Lodha AAFPM7106C 83,900 Meckoni Building, 3rd Floor Plot No. 375 Bhandarkar Road Matunga Mumbai 7 Ashok Baburam 149,200 Garg 8 Ashok Kantilal Shamji Lodha AAAPM9895M 33,000 Meckoni Building, 3rd Floor Plot No. 375 Bhandarkar Road Matunga Mumbai 9 Basant Kumar Janakganj, AHBPP4197K 109,100 Parwal Kadam Saheb Ka Bada, Gwalior 10 Bina M. Halani Club Road, Opp. AAFPH7682A 142,200 Gandhi Ghar, Brij Vihar, Distt Surendra Nagar, Dhangatdha (GUJ.) 11 Chitra Agrawal P-2, Asharay AAIPA3251B 421,000 Apartment, 12
-: 13: -
Manoramaganj, Indore 12 D.R.Exports 4107 Naya Bazar, AAAFD3992N 421,000 New Delhi 13 Dharam Chand 13 Ramanuja Iyer AADPC4406D 719,000 Chordia Street, Madras 14 Dileshwari Amravati 98,940 Vasant Mimje 15 Elteece Tobacco C/o Laxmi Solvex AAACE1477E 2,853,700 Ltd. Ltd.
16 Ganga Nagar Shriganganagar 136,670 Trading Corp.

17   Hindustan          304,     Gold     Star   AABCH1575M   22,549,800

     Continental Ltd.   Tower             576,

                        M.G.Road Indore

18   J.V.Vassa HUF      C/o Prakash Bhai         AABHV4216J    2,421,920

                        Vadilal,           39,

                        Nagarseth Market,

                        Ratanpole,

                        Ahmedabad

19   Jasmine Ashok      Shamji           Lodha   AKBPM5570C      10,800

     Meckoni            Building, 3rd Floor

                        Plot       No.    375

                        Bhandarkar Road

                        Matunga Mumbai

20   Kantilal Pragji    Shamji           Lodha   AAAPM9894L      65,000

     Meckoni            Building, 3rd Floor

                        Plot       No.    375

                        Bhandarkar Road

                        Matunga Mumbai




                                                                           13
                                           -: 14: -

21   Latadevi. V       Dayal          Agro    AHZPB3513H    253,150

     Bachuka           Product Ltd. New

                       Radhakishan,

                       Plot,          Opp.

                       Hospital,      Road

                       Akola Maharastra

22   Jayantilal        14,      Commercial    AAEFJ6843J   1,006,500

     Harichand Patel   Chamber        Satta

                       Bazar,       Behind

                       Banapth, Rajkot

23   Mahesh            Vijay    Automobile,   ACIPK6031F    123,600

     Khandelwal        Mhow          Road,

                       Ratlam

24   Mangla B.         Dayal          Agro    ABUPB2793G    106,330

     Bachuka           Product Ltd. New

                       Radhakisha, Plot,

                       Opp.        Hospital

                       Road,         Akola

                       Maharashtra

25   Manubhai          55/59 Nagarj Seth      AFQPS1524J    169,800

     Nagindas Shah     Market, Ratanpole,

                       Ahmedabad-1

26   J.B.Patel         14,      Commercial    ACGPP7009J    108,800

                       Chamber        Satta

                       Bazar,       Behind

                       Banapth, Rajkot

27   S.D.Patel         14,      Commercial    AFHPP3007L     51,800

                       Chamber        Satta

                       Bazar,       Behind

                       Banapth, Rajkot




                                                                       14
                                            -: 15: -

28   Sumesh D. Patel    14,      Commercial    ACGPP7008K         62,600

                        Chamber        Satta

                        Bazar,       Behind

                        Banapth, Rajkot

29   H.J.Patel          14,      Commercial    ABOPV3604Q         54,300

                        Chamber        Satta

                        Bazar,       Behind

                        Banapth, Rajkot

30   K.J.Patel          14,      Commercial    ACLPV2768D         50,200

                        Chamber        Satta

                        Bazar,       Behind

                        Banapth, Rajkot

31   R.J.Patel          14,      Commercial    ACJPP7010D        614,400

                        Chamber        Satta

                        Bazar,       Behind

                        Banapth, Rajkot

32   D.J.Patel          14,      Commercial    ABOPV3575G        103,100

                        Chamber        Satta

                        Bazar,       Behind

                        Banapth, Rajkot

33   Mukesh        V.   Iscon Mall Above       AAWPH0487L        313,350

     Halani             Star           India

                        Satellite     Road,

                        Ahmedabad

34   Navjeevan          B-92,       Rajdhani    Death Certi.     104,400

     Enterprise         Anaj Mandi, Sikar

                        Road,        Jaipur-

                        302023

35   Param Industries   Film Colony R.N.T.     AACCP2413R      11,006,700

     Ltd.               Marg




                                                                            15
                                               -: 16: -

                          Indore

36   Paras Manubhai       55/59 Nagar Seth        AFQPS1523R     51,600

     Shah                 Market Ratanpole,

                          Ahmedabad-1

37   Parul        Rishi   Dal             Bazar   AHNPA5321L     79,200

     Agrawal              Lashkar, Gwalior

38   Pragesh    Satish    2,    Chota    Sarafa   ABZPN8695E     76,140

     Neema                Indore

39   Prakash              201, Hira Panna         ACOPN8578Q     24,700

     Nehalani             Apartment,        32

                          Khatiwala       Tank

                          Indore

40   Rachit               Vijay    Automobile,    AHWPK7219A     34,000

     Khandelwal           Mhow            Road

                          Ratlam

41   Radhika              P-2           Asharay   AADPK1889N    152,600

     Agrawal              Apartment,

                          Manoramaganj,

                          Indore

42   Rajavi Agrawal       P-2           Asharay   AADPK1889N    152,700

                          Apartment,

                          Manoramaganj,

                          Indore

43   Rajesh               B-92,      Rajdhani     AADHR8530F     46,300

     Dagyayach HUF        Anaj Mandi Sikar

                          Road,          Jaipur

                          302023

44   Rajesh               14,      Commercial     AAFFR5983G   1,051,400

     Jayantilal Patel     Chamber         Satta

                          Bazar,         Behind




                                                                           16
                                               -: 17: -

                         Banapth, Rajkot

45   Raksha         J.   C/o Pradeep Bhai,        ABQPT3195A     111,930

     Thakkar             D-21,           APNC

                         Market           No.1,

                         Mandi           Bazar,

                         Vashi,            New

                         Mumbai

46   Rashmi Sandeep      Janakganj,                               28,500

     Tiwari              Kadam Saheb Ka

                         Bada Gwalior

47   Ratan     Chand     52-a,    Devi    Path,   AAKPJ9631J     294,850

     Jain                Takht     E     Shahi

                         Road, Jaipur

48   Reena          M.   Dayal            Agro    AFVPB2058R     209,700

     Bachka              Product Ltd. New

                         Radhakishan,

                         Plot, Opp. Hospital

                         Raod,           Akola

                         Maharashtra

49   Ruchi Soya Ltd.     Mahakosh House,          AAACR2892I   17,501,500

                         7/5             South

                         Tukoganj, Indore

50   Sandeep             P-2           Asharay    AACPA5201H     149,400

     Agrawal             Apartment

                         Manoramaganj,

                         Indore

51   Satish              Vijay    Automobile,     ADQPK4934N      75,000

     Khandelwal          Mhow             Road

                         Ratlam

52   Satish Neema        2,    Chota     Sarafa   ABOPN2352F     237,350




                                                                            17
                                                -: 18: -

                           Indore

53   Shah Anilkumar        55/59, Nagar Seth        ALPHS4696R    997,600

     Balubhai              Market, Ratanpole,

                           Ahmedabad

54   Shah       Dinesh     55/59, Nagar Seth        ALPHS4696R    965,000

     Chintu Bhai           Market, Ratanpole,

                           Ahmedabad

55   Sharda Bhimwal        74,        Kanchan       ACIBP4168L     50,600

                           Baugh, Indore

56   Sheela                15, Mhow Road,           ADQPK4913R     20,800

     Khandelwal            Ratlam

57   Smt. Radha Devi       7292,      Sudama        AKFPK7754A     84,950

     Koolwal               Nagar,     60    Feet

                           Road, Indore

58   Smt. Shanti Devi      7292,      Sudama        AKFPK7754A     84,950

     Koolwal               Nagar,     60    Feet

                           Road, Indore

59   South         India   36,              New     AAGCS5522E    746,800

     Edible Oils Delhi     Mandakini

                           Enclave,          NRI

                           Complex,         New

                           Delhi

60   Sunderlal Gupta       2637,    2nd    Floor,   AARPG0427C   1,130,835

                           Naya Bazar, New

                           Delhi

                           D-13,          Ashoka

                           Raod,      Aadrash

                           Nagar Delhi-33

61   Sandeep & Co.         13, Ramanuja Iyer        AAIPK6225H    862,800

                           Street, Madras




                                                                             18
                                                -: 19: -

62   Sunder         Bai   Shamji          Lodha     AAFPM7354L        70,000

     Kantilal             Building, 3rd Floor

                          Plot     No.      375

                          Bhandarkar Road

                          Matunga Mumbai

63   Surendra Govind      59/1,          Virhana    APKPS0364N        74,330

     Prasad Sharma        Road             Garg

                          Building Kanpur

64   Umadevi         P.   Dayal             Agro    ABUPB2776R        92,940

     Bachuka              Product Ltd. New

                          Radhakisha, Plot,

                          Opp.          Hospital

                          Road,            Akola

                          Maharashtra

65   Usha                 15, Mhow Road,             ACIPK6030E       21,000

     Khandelwal           Ratlam

66   Vijay Dangayach      B-92      Rajdhani         Death Certi.     40,200

     HUF                  Anaj Mandi, Sikar

                          Road,          Jaipur-

                          302023

67   Vijay Jain           Indore                                      50,800

68   Y.         Jagdish   M/s. Yelchuri Agro        Person Expired   283,730

     Kumar                Industries,       New

                          Plot           No.-20,

                          Sabhullah       Street,

                          T Nagar Chennai-

                          17

69   Adinath Traders      Krishi Upaj Mandi         AAFPJ0162G                 -2,501,590

                          Astha Dist. Sehore

70   Agri International                                                         -855,700




                                                                                    19
                                                -: 20: -

     Ltd.

71   Agro Tech Foods      219-20    1st    Floor    AAECA0303M     -265,700

     Ltd.                 Swastik Oil CTS

                          Road        Chambur

                          Mumbai

72   Agrawal              5-9-449 Afjalganj,        AACCA0094R    -4,924,900

     Industries           Hyderabad

73   GBX Export Ltd.      558-560          Narsi                  -2,057,350

                          Natha           Street,

                          Katha           Bazar,

                          Mumbai

74   Giriraj    Trading   Binaganj,        Distt.   ANHPA1722F    -2,515,400

     Corporation          Guna (M.P.)

75   Hindustan            Indore                                  -2,127,010

     Trading Co.

76   J.R.Agro             4.4      J.M.Dewas        AAACJ2956P    -2,123,700

     Industries Ltd.      Road          P.O.Box

                          Nagar         Somaiya

                          NagarBarabhanki

77   Jain Bandhu                                                   -200,150

     Traders

78   Jitendra Patidar     Bhopal                                   -317,730

     Bhopal

79   Khemchand            Old     Bus     Stand,    AAKFK0737G    -2,000,590

     Khumanchand          Begagunj,        distt.

     Sahu                 Raisen

80   Liberty Oils Mills   Amirchand                 AAACL0888N   -67,703,100

     Ltd.                 Mention, D Wing

                          16, Medame Cama

                          Road,             Cola




                                                                       20
                                              -: 21: -

                          Mumbai-400001

  81     Parekh Foods     Comet        House,    AABCT0312N                -41,734,010

         Ltd. Pune        691/A-10Pune

                          Satara         Road,

                          Pune-411037

  82     Priyanka         D-18      Caunaghtp    AAACP0070O                 -1,133,500

         Overseas Ltd.    Place, New Delhi

                          301,-CG2        Park

                          Regency, 71 A MIG

                          Colony Indroe

  83     Rajendra         14,      Commercial    ACIPP9612R                 -1,002,450

         Prachudas        Chamber,       Satta

         Pobaru           Bazar,       Behind

                          Danapit, Rajkot

  84     Shree Balaji     Indore                                             -402,150

         Protiens

                                                    Total     70,873,650   -131,865,030

A.Y.2004-05

  1      A.Pradeep        C/o      Pradeep   &   AAJFA8925D      70,400

         Commodities      C/o.,           D-21

                          APNCMarket No.1

                          Mandi         Bazar,

                          Vashi           New

                          Mumbai

  2      A.Pradeep        D-21 APNCMarket        AABPT2192B      30,200

         Kumar & Co.      No.1 Mandi Bazar,

                          Vashi           New

                          Mumbai

  3      Ajay Kedia HUF   38,      Warehousej    AAFHA1724G      51,500

                          Road, Indore




                                                                                 21
                                               -: 22: -

4    Akalmer Oils &      4th Floor Arpana         AADCA3673P   5,076,500

     Fat Ltd.            Crest, Road, No. 2,

                         Banjara          Hills

                         Jyderabad-

                         500033(A.P.)

5    Alok Jain           403,       Shriniwas     AFAPJ8476J    124,300

                         Mahavirresidency,

                         4-1-10 Tilak Road

                         Ramkot

                         Hyderabad

6    Ambika Solvex       Satya           Geeta    AACCA5958N    303,290

                         Apartment, Sapna

                         Sangeeta        Road,

                         Indore

7    Anand       Kumar   2,     New     Patiya,   ADRPG1806G     61,360

     Gupta               Surajbhan,

                         Phatak, Binaganj,

                         Agra

8    Anil Maheshwari     721, Usha nagar          AGOPM2695K     49,500

                         Ext., Indore

9    Bhakti      Foods   A Block Room No.         AAAJB8013J    197,700

     Pvt. Ltd.           230-31,      Bardhan

                         Grand          Plaza,

                         Manglam        Palace

                         Delhi-85

10   Bharat              Dayal            Agro    AAAHB8013J    197,700

     J.P.Bachuka         Product Ltd. New

     HUF                 Radhakisha,       Plot

                         opp.         Hospital

                         Road,           Akola




                                                                           22
                                               -: 23: -

                          Maharashtra

11   Chitrmal             2,    New     Patiya,   ABXPA6742P     69,800

     Agrawal              Surajbhan Phatak,

                          Binaganj, Agra

12   Gayatri Devi V.      Dayal           Agro    AHZPB3514A    262,600

     Bachuka              Product Ltd., New

                          Radhakishan,

                          Plot, Opp. Hospital

                          Road,          Akola

                          Maharashtra

13   Good        Health   1-8-663      Ajmabad    AAACG7497G   6,365,520

     Agro Tec. Ltd.       Industrial     Area-

                          Hyedrabad

14   Hem        Chandra   Chawani,        Near    ADEPA3422H    100,030

     Agrawal              Mangilal       Dudh

                          Bahndar, Indore

15   Hema Kedia           38,     Warehouse       AFKPK2732G     51,000

                          Road Indore

16   Hindustan                                                  174,300

     Trading Co.

17   Jagdish Prashad      Dayal           Agro    ABUPB2786P    202,770

     P. Bachuka HUF       Product Ltd. New

                          Radhakishan, Plot

                          opp          Hospital

                          Road,          Akola

                          Maharashtra

18   Kishore              Dayal           Agro    AFBPB2057A    301,710

     Vishwanth            Product Ltd. New

     Bachuka              Radhakishan, Plot

                          opp          Hospital




                                                                           23
                                                -: 24: -

                            Road,          Akola

                            Maharashtra

19   Latadevi          V.   Dayal           Agro   AHZPB3513H    267,400

     Bachuka                Product Ltd. New

                            Radhakishan, Plot

                            opp       Hospital

                            Road,          Akola

                            Maharashtra

20   LEO Edibles       &    Hyderabad              AAACL3059J   1,435,500

     Fats

21   LEO         Global     Mumbai                 AAANL1525N   1,128,900

     Stocks (P) Ltd.

22   Lila     Devi     J.   Dayal           Agro   AHZPB3513H    249,900

     Bachuka                Product Ltd. New

                            Radhakishan, Plot

                            opp       Hospital

                            Road,          Akola

                            Maharashtra

23   Mahendra               38A-Gulmarg                           43,600

     Dawani                 Colony Indore

24   Mahesh      Kedia      38,     Warehouse      AAFHM5432F     51,500

     HUF                    jRoad Indore

25   Mangla            B.   Dayal           Agro   ABUPB2793G    269,000

     Bachuka                Product Ltd. New

                            Radhakishan, Plot

                            opp       Hospital

                            Road,          Akola

                            Maharashtra

26   Manish Kumar V.        Dayal           Agro   AAHHM6993B    301,710

     Bachhuka               Product Ltd. New




                                                                            24
                                                  -: 25: -

                           Radhakishan, Plot

                           opp         Hospital

                           Road,            Akola

                           Maharashtra

27   Miss        Madhu     Mahawar         Nagar,                      53,500

     Agrawal               Indore

28   Narayan ji Gupta      C/o Pandit Akola          ACFPG8519F      1,339,300

                           Hari             Kripa

                           Building        Behind

                           Aman       Ka     Plat-

                           Akola

29   Nav                   Nav Maharashtra           AAACN9941J       864,750

     Maharashtra           House              43,

                           Shaniwar          Peth-

                           411030

30   Navjeevan             B-92       Rajdhani        Death Certi.    691,550

     Enterprises           Anaj Mandi, Sikar

                           Road            Jaipur-

                           302023

31   Nilesh Laddha         596, Usha Nagar           ABHPL8074F       104,950

                           Ext. Indore

32   Pankaj    Vasant      Dayal             Agro    AAAHV6959B       301,710

     Kumar Bachuka         Product Ltd. New

                           Radhakishan, Plot

                           opp         Hospital

                           Road,            Akola

                           Maharashtra

33   Prakash       Foods   Comet           House     AABCT0312N      6,700,050

     Ltd.                  691/A-10          Pune

                           Satara           Road,




                                                                                 25
                                              -: 26: -

                         Pune-411037

34   Pawan      Kumar    Dayal            Agro    AABHP0411K   203,600

     J.P. Bachuka        Product Ltd. New

                         Radhakishan, Plot

                         opp       Hospital

                         Road,          Akola

                         Maharashtra

35   Pradeep             604,     Merathan        AAAHP5712Q    78,000

     Jamnadas            Galaxy             -II

     Thakkar HUF         L.B.S.Road,      Near

                         Nirmal Life Style,

                         Mulund            (w)

                         Mumbai

36   Rakesh Gupta        428, Sethi Nagar                      139,140

                         Ujjain

37   Reena          M.   Dayal            Agro    AFVPB2058R   253,600

     Bachhuka            Product Ltd. New

                         Radhakishan, Plot

                         opp       Hospital

                         Road,          Akola

                         Maharashtra

38   Rohan      Ashok    Sarafa opp. Police       ADEPN0632J    30,500

     Kumar Neema         station indore

39   Sardar Devender     28/85          Dawa      AAEHD3353B    66,500

     Singh Rajpal        Bazar Indore

40   Sardar Joginder     28/85          Dawa      AADHJ8745C    66,500

     Singh      Rajpal   Bazar Indore

     HUF

41   Sardar              28/85          Dawa      AAGHK0118M    66,500

     Kawaljeet Singh     Bazar Indore




                                                                         26
                                                -: 27: -

     Rajpal HUF

42   Sardar     Satpal   28/85,           Dawa     AANHS9348L     66,500

     Singh      Rajpal   Bazar, indore

     HUF

43   Shri Ganesh         630 Usha Nagar            AALFS7894K    304,380

     Investment Co.      Ext. ndore

44   South India         36,               New     AAGCS5522E    267,275

     Edible P. Ltd.      Mandakini

                         Enclave,           NRI

                         Complex,          New

                         Delhi

45   Sudha Kedia         38,     Ware    House     AFKPK2731F     51,000

                         Road, Indore

46   Sunderlal Gupta     2637,     2nd     Floor   AAHCS6857K   2,951,300

     Investment P.       Naya Bazar, New

     Ltd.                Delhi

47   Sunil Kedia HUF     38,      Warehouse        AAFHA1724G     53,500

                         Road, Indore

48   Surendra            59/1           Virhana    APKPS0364N    156,270

     Sharma Kanpur       Road              Garg

                         Building Kanpur

49   Swati Devi V        Dayal             Agro    ABLPJ6826D    249,900

     Bachuka             Product Ltd. New

                         Radhakishan, Plot

                         opp            Hospital

                         Road,            Akola

                         Maharashtra

50   Uma Devi P.         Dayal             Agro    ABUPB2776R    249,800

     Bachuka             Product Ltd. New

                         Radhakishan, Plot




                                                                            27
                                             -: 28: -

                       opp         Hospital

                       Road,            Akola

                       Maharashtra

51   Vasant Kumar      Dayal             Agro       AAAHV6959B    202,600

     P.D.Bachuka       Product Ltd. New

     HUF               Radhakishan, Plot

                       opp         Hospital

                       Road,            Akola

                       Maharashtra

52   Vishal            C/o Pandit Akola              AINPP0589K   102,220

     Kishangopal       Hari             Kripa

     Purohit           Building        Behind

                       Aman       Ka     Plat

                       Akola

53   Vishvanath P.D.   Dayal             Agro       AAAHV6960L    203,600

     Bachuka HUF       Product Ltd. New

                       Radhakishan, Plot

                       opp         Hospital

                       Road,            Akola

                       Maharashtra

     Agrawal
                       5-9-449 Afjalganj
54   Industries                                     AACCA0094R
                       Hyderabad,


                       501,      5th    Floor,

                       Jai

                       Singh,      Business
     And agro Foods
55                     Center,         Sahara AACCA5640D                    -3,172,200
     Ltd.
                       Intnl.,         Airport

                       Road,      Andheri       -

                       Mumbai




                                                                                  28
                                             -: 29: -

                        Chhota
     Bhaskar
56                      Malsapura         Post AAACB6091M      -4,526,800
     Exxoils Ltd.
                        Siya, Dewas

                        4107           Naya
57   D.R.Export                                  AAAFD3992N     -486,400
                        Bazar, New Delhi

                        C/o            Ankit

     Jay Traders        Traders         Near
58                                                                -28,500
     Khandwa            Town       Hall      -

                        Khandwa

                        3rd             Floor

                        Chaturvedi
59   Laxmi Solvex                                AAACL1082G    -15,517,150
                        Mention,          A.B.

                        Road Indore

     Priyanka           D-18     Caunaghtb
60                                               AAACP00700    -1,690,000
     Overseas Ltd.      Place, New Delhi

                        Janakganj,
     Rashmi
61                      Kadam Saheb ka                            -30,330
     Sandeep Tiwari
                        Bada, Gwalior

                        34-A          Sector,

     Sarvottarn Veg.    Sanwer         Road
62                                                AAFCS7200J   -1,163,700
     Oil Ref. P. Ltd.   Industries     Area.

                        Indroe 452015

                        Sadar      Bazar     -    AAECS6522
63   Sharda Solvent                                            -1,544,100
                        Shivpuri                       Q

     Shree Balaji
64                      Indore                                  -103,600
     Protins

                        Yelchuri agro

     Y. Jagdish         enterprises,      New
65                                                  Expired    -4,196,200
     Kumar              No.      20       Old

                        Sadullah       Nagar




                                                                     29
                                              -: 30: -

                          Chennai -



                                                    Total      36,671,080   300,401,140


AY.2005-06

                          301,         Princess
        Adani Export
  1                       Pride, 21/3 New         AABCA2804L       97,000
        Ltd.
                          Palasia,

                          403,     Shriniwas,

                          MahavirResidenc

  2     Alok Jain         y   4-1-10      Tilak   AFAPJ8476J      149,880

                          Road,        Ramkot,

                          Hyderbad

                          285,     M.G.Road,
  3     Anil Industries                           AGOPM2695K      105,350
                          Indore

                          164 R.N.T. Marg,
  4     Anita Mangal                              AlTPM0699Z       74,670
                          Indore

                          Anuj             Rice

                          Product,

  5     Anuj Agrawal      Industrial     Area, ABXPA1794M         959,500

                          A.B.Road,

                          Shivpuri

                          4107           Naya
  6     D.R.Exports                               AAAFD3992N    2,105,000
                          Bazar, New delhi

                          Tilak          Road

  7     Gaurav Kothari    Rajorkar                APAPK0167P      399,000

                          Compound Akola

                          1/4

                          Maharani
  8     Jimmy Shah                                AREPS4677C       49,260
                          Road,

                          Indore




                                                                                     30
                                           -: 31: -

                        49 a Jagannath
9    Lovely Agrawal                          ADLPA2637D       75,870
                        Puri, Mathura

     M/s                596,        Usha

10   Laxminarayan       Nagar        Ext.    ABHPLB074F     249,820

     Laddha             Indore

     Nakoda             401,        Royal

11   Commodities Pvt.   GoldY.N.Road,I       AABCN4954C     203,400

     Ltd.               ndore

                        C/o       Pandit

                        Akola        Hari

12   Narayanji gupta Kripa       Building    ACFPG8519F     200,500

                        Behind      Aman

                        Ka Plat - Akola

                        6, Udyog Nagar

13   Om Industries      Devguradia           AAAFA3073P    6,491,300

                        Road, Indore

                        14, Commercial
     Rajendra
                        Chamber, Satta
14   Prabhudas                                ACIPP9612R   1,986,500
                        Bazar     Behind
     Pobaru
                        Danapith,

     Rajendra

     Rameshwarday 164               RN.T.
15                                            AAJHR3661       79,490
     al Ist Maznal      Marg, Indore

     HUF

                        29,         Khara
16   Rajesh Patni                            AKGPP1548L    1,323,490
                        Kunwa, Uiiain

     Radhika            49 a Jagannath
17                                           AGSPA0088Q       77,170
     Agrawal            Puri, Mathura

                        Mahakosh
18   Ruchi Soya Ltd.                          AAACR28921   18,857,300
                        House,       7/5




                                                                        31
                                          -: 32: -

                      South

                      Tukoaanj,

                      Indore

     Shri Hans        MandiRoad,Dh
19                                           AAPPN8289D    696,100
     Traders          amnod

     Smt. Sitabai     164           R.N.T.
20                                           AGDPM3356J     89,300
     Agrawal          Marg, Indore

     Sangeeta         164            RN.T.
21                                           AGDTM3347B     81,590
     Manzal           Marg, Indore

                      Nagori Gate ke

                      Bahar
     Vaibhav Laxmi
22                    Kaga Road, Plot        AAZPK2156L    527,600
     Investment
                      no . 13 Chhipa

                      Colony,

     Vijay

     Rameshwar        164           R.N.T.
23                                           AADHV8779N     75,600
     Dayal Mangal     Marg, Indore

     HUF

     Vinod

     Rameshwar        164            RN.T.
24                                           AADHV8778B     80,690
     Dayal Mangal     Marg, Indore

     HUF

                      3-9,     II    Floor

                      Model Town II,
     Raghunath
25                    above         Archis   AAACR0362F   1,707,410
     Agency
                      Gallery,        New

                      Delhi

                      F3            Ratlam   ADJPA9811
26   Saurav Agrawal                                         49,560
                      Kothi, Indore                 F

27   Akalmer Oils &   4th Floor Arpana       AADCA3673P               -5,364,160




                                                                            32
                                             -: 33: -

     Fat Ltd.            Crest, Road no.o.

                         2 Banjara Hills,

                         Hyderbad-

                         500033 (A.P.)

                         501,    5th   Floor,

                         Jai           Singh,

                         Business Center,
     And agro Foods
28                       Sahara         Intnl.   AACCA5640D     -794,450
     Ltd.
                         Airport       Road,

                         Andheri             -

                         Mumbai

                         Chhota
     Bhaskar
29                       Malsapura       Post    AAACB6091M    -3,130,700
     Exxoils Ltd.
                         Siya, Dewas

                         New

                         Radhakishan,

     Dayal Agro          Plot,          Opp.     AABCD2713
30                                                              -493,000
     Product Ltd.        Hospital,     Road,           R

                         Akola

                         Maharastra

                         1-8,-663,

     Good Health         Ajmabad
31                                               AAACG7497G     -830,970
     Agro Tecl. Ltd.     Industrial     Area

                         Hyedrabad

                         3rd            Floor

                         Chaturvedi
32   Laxmi Solvex Ltd.                           AAACL1082G    16,905,200
                         Mention,

                         A.B.Road, Indore

     Madhu Trading       15-9-453
33                                               ABLLPA2872L    -150,000
     Co.                 Afjalganj,




                                                                     33
                                           -: 34: -

                      Hvderbad

     Maharashtra

34   Oil Extruction   Dhulia                  AABCM5897M     -390,400

     Pvt. Ltd.

     Mahendra         7/1       Maharani
35                                            AFJPA9365C     -117,921
     Agrawal          Road, Indore

                      Maharaja

     Padmavati Oils   Complex,        Main
36                                            AABCT0312N     -261,700
     Pvt. Ltd.        Road          Shirpur

                      Maharastra

                      Comet          House

     Parekh Foods     691/ A-I 0 Pune
37                                            AABCT0312N    -4,107,050
     Ltd.             Satara          Road,

                      Pune- 411037

                      209, M.G. Road,

     R.C.G. Finance   Rajani        Shavan,
38                                            AAACR9505L    -4,116,650
     Pvt. Ltd.        M.G.Road,

                      Indore

                      W        /0      Late

                      Jamunadas

                      Maheshwar,

                      Near
     Smt. Kalavati
39                    Markandesh               Not Having   -1,312,350
     Surjan
                      war.          Mandir,

                      Choti

                      Bazaria,Murena,

                      (M.P.)

     South India      36,              New

40   Edible Oils      Mandakini,              AAGCS5522E     -399,000

     Delhi            Enclave,         NRI




                                                                  34
                                             -: 35: -

                          Complex,       New

                          Delhi

                          M/s        Yelchuri

                          Agro    Industries,

            Y Jagdish     New        No.-20,
 41                                                Expired                    -15,000
               Kulnar     Sabhul1ah

                          Street. T Nagar,

                          Chennai - 17

                                                   Total     36,792,350   -38,388,851

A.Y.20

06-07

                          229           Vinay
  1      Ankita Bagani                          AIYPB3894M     101,000
                          Nagar, Indore

                          48, Satya Mill,

  2        B.S.Tra,ders   Parole        Road,   AADHP5284Q      10,250

                          Dhule [Maha]

                          229           Vinav   AIYP83895
  3      Dipika Sagani                                         102,600
                          Nagar, Indore                L

                          229           Vinay   AIYPS3892
  4        Dipti Bagani                                        106,800
                          Nagar, Indore             P

                          90,           Jaora
         Kailash Nahar
  5                       Compound,             AADHN6548K     155,360
         HUF
                          Indore

                          Film       Colony,
         Nova Trading                           AAACN919
  6                       R.N.T.        Marg                  2,696,350
         Pvt. Ltd.                                 5J
                          Indore

                          7292,     Sudama
                                                ADZPK763
  7       Puja Koolwa1    Nagar, 60 Feet                        94,710
                                                   5H
                          Road Indore

  8       Puja Vaishya    G     21/22    Side   ABJPV507       127,400




                                                                                 35
                                           -: 36: -

                       No.1            City      7G

                       Center, Gwa1ior

                       106,           Yash
     Rakesh Kumar                             AAFHR865
9                      tower,         Janki                 61,100
     Goyal                                       5F
                       Nagar, Indore

                       G      21/22    Side
     Sandeep
10                     No.1            City   ABJPV5076H    30,600
     Vaishya
                       Center, Gwalior

                       G 21 /22 Side
     Shakun
11                     N.O.     1      City   ABCPV3508P   168,400
     Vaishya
                       Center, Gwalior

                       90,            Jaora

12    Suchita Nahar    Compound,              ADQPN2302K   123,990

                       Indore

     Anuradha          9/8             New
13                                            ADHPT7982N   111,500
     Tiwari            Palasia, Indore

     Shupendra         3/7          Mahesh
14                                            AAAHB9874K   134,000
     Chaganlal Shah    Nagar Indore

                       Nand      Shavan,

                       27/01          Race
15   Smt. Saroj Soni                          ATGPS4238P    13,800
                       Course         Road,

                       Indore

     Gaurishankar      24,       Subhash
16                                            AACHG5560R    21,600
     Bhavsar HUF       Chowk Indore

                       Nand      Bhavan,

     Gordhandas        27/01          Race
17                                            AHCPS6179H    74,000
     Soni              Course         Road

                       Indore

     Agrawal           5-9-449,
18                                            AACCA0094R   335,000
     Industries        Afjalganj




                                                                     36
                                             -: 37: -

                        Hyderabad

                        Shiwani Sadan

                        Dutta      Mandir

19   Amit Shivani       Road       ,      Gal    ANZPS4422Q    225,410

                        Chouraha             -

                        Mandsour (MP)

                        170/10           Film
     Anant Steel Pvt.
20                      Colony,        R.N.T.    AACCA1283E   2,000,700
     Ltd.
                        Marg Indore

                        45, Juna Pitha
                                                 AAHHA4650
21   Anil Neema Huf     Main           Road,                   103,620
                                                       F
                        Indore

                        229            Vinav
22   Ankita Baaani                               AIYPB3894M    101,000
                        Nagar, Indore

                        Anuj             Rise

                        Product,         Ind.
23   Anuj Agrawal                                ABXPA1794M   1,515,950
                        Area, A.B.Road,

                        Shivpuri

                        3/7        Mahesh
24   Arpita Shah                                 AEBPJ3556P    145,600
                        Nagar Indore

                        201,           Starlit
25   Arun Agrawal                                AGNPA8540J    111,300
                        Tower,

                        3/7        Mahesh
26   Arunaben Shah                               ADUPS9492D    77,100
                        Nagar Indore

                        Gumasta Nagar,
27   ArunaJain                                   AEOPJ7951B    103,666
                        Indore

                        Gumasta Nagar,
28   Alka Jain                                   AEOPJ7953D     93,510
                        Indore

     Usha Devi          36,        Manish
29                                               ADZPG7760K    101,180
     Goyal              Baugh      Colony




                                                                          37
                                              -: 38: -

                          Indore

         Narendra         Chowk        Bazar,
 30                                              ADAPA0131B      1,022,200
         Kumar Agrawal Burhanour

                          Chota
         Bhaskar                                 AAACB6091
 31                       Malsapura, Post                         875,750
         Exxoils Ltd.                                    M
                          Sia,Dewas

                          35/47       Agrawal
 32      Bhavna Jain                             ADZPG776lJ       101,180
                          Nagar Indore

                          79,         Patrakar
 33      Bhavna Goyal                            ABGPJ2149G       180,180
                          Colony Indore

                          30      1   Princess

         Adani Exports    Pride, 21/3 New
 34                                              AABCA2804L                   -63,000
         Ltd.             Palasia      Indore-

                          452003

                          501, 5th Floor,

                          Jai           singh

                          Business
         And Agro Foods
 35                       Center,      Sahara    AACCA5640D                  -354,350
         Ltd.
                          Inti.        Airport

                          Road,       Andheri

                          (MUMBAI)

                                                        Total   11,226,806   -417,350

A.Y.20

07-08

                          P-2         Asharay

                          Apartment,
  1      Akash Agrawal                           AACPA5203F       329,750
                          Manorrnaganj

                          Indore

         Anil Agrawal     P-2         Asharay
  2                                              AAAHA1454L       200,300
         HUF              Apartment,




                                                                                   38
                                        -: 39: -

                     Manormagani

                     Indore

                     630,         Usha
     CC-H5 Suresh
                     Nagar Ext., Opp.
3    Chandra                               AAPHS9925M    56,000
                     Dashahara
     Agrawal (HUF)
                     Maidan, Indore

     CC-HD51         Naya       Bazar,

4    Hasmukh Bhai    Limdi,        Dist.   ADRPP6712E    50,200

     Panchal         Dahod

CC-M63 Sheetal H. No. J-9 HlG 5 AJVPP7846D 137,180 Parvani Colony - Indore 18-19 Maa CC-RI60 Mohit Durga Nagar, 6 AHOPB2399E 291,520 Betala Janki Nagar Indore 18-19 Maa CC-RI61 Vinay Durga Nagar, 7 ACAPV2144A 290,200 Betala Janki Nagar Indore CC-RI65 210 Jagjivan 8 Omprakash Ram Nagar - AEJPA3163M 4,550 Agrawal Indore CC-RI92 Premier 107-Chetak 9 AABCP1890P 636,600 Industries Center- Indore (India) Ltd.

41-A New Dhan CC-RS51 Mandi Distt. Shri ACQPK3153 10 Surendra 105,000 Ganga Nagar - N Kumar Agrawal Sadul Sahar 39

-: 40: -

                      Narani          Road,
                                                Not furnish by
                      Dist        Banda,
11   Vikas Shivhare                             client's Copy     16,900
                      Atara
                                                of . KYC Encl.
                      210201(U.P.)

     CC- Y22 Deepak Near Dena Bank               ABMPS1728
12                                                                60,700
     Jain             - Distt. Dhuliva                    A

                      404 Dwarkadas

                      Rosami Mantion,
     CC- Y7 Rakesh
13                    Kadwa           Lane,      AEVPJ3441F       30,100
     Jain
                      Jamli      Naka       -

                      Thane

                      Polt      No.       11
     CC-ZI7 Neha                                 AQFPK7267
14                    Paigha Colony -                            361,600
     Kothari                                              C
                      Seeunderabad

                      3-4-229 Flate No.

     CC-Z8 Sanjay     402,      Kakinada
15                                              ABTPS7390H       498,520
     Shah             Station         Road-

                      Kakinada

     Chandra Mohan C/o                Giriraj
16                                               AIRPD2282N       15,300
     Damani           Traders,

                      Sarafa,

     Essence          Buldhana301,-
                                                AABCE3874
17   Investment &     Apollo     Square,                         105,000
                                                      A
     Finance Ltd.     7/3 Race Course

                      Road, Indore

                      Pharma      Search,

     Gleneore Grain   3rd              floor,   AACCG5797
18                                                               654,000
     India (Indore)   B.G.Kher        Marg,           M

                      Worli, Mumbai

19   Good Health      1-8-663                   AAACG7497G       581,060




                                                                           40
                                           -: 41: -

     Tech Pvt. Ltd       Ajmabad

                         Industrial-Area -

                         Hyedrabad

     Hasmukh Bhail       Naya       Bazar-
20                                            ADRPP6712E
     Panchal             Limdi

                         Shrikrishna, 11,

     Hira Agro           Ramnagar
21                                            AAAFH8616B    2,555,750
     Industries Akola    Behind      L.R.T.

                         Collage, Akoa

                         Mahakosh

     Idea International House,        7/5,
22                                            AABCI1527J    1,888,700
     Pvt. Ltd.           South Tukoganj,

                         Indore

                         Jiwaji       Ganj,
23   K.S. Oils Ltd.                           AABCK3119J     120,500
                         Murena

                         90,         Jaora
     Kailash Nahar
24                       Compound,            AADHN2465K      70,200
     HUF
                         Indore

                         C/o      Sunderlal

25   Krishna Kumar       Gupta,       New     AAXPG2465K    1,125,150

                         Delhi

     M/s.                596,         Usha

26   Laxminarayanji      Nagar         Ext.   ABHPL8074F     206,600

     Laddha              Indore

                         H.No.620-

                         Jawahar Colony
27   Mohit Trading Co.                        ALXPK8761C   20,202,800
                         New         Mandi

                         Muzaffernagar

                         18-Vasudev
28   Mona Nagwani                             AAQPN6516N     109,400
                         Nagar- Indore




                                                                        41
                                         -: 42: -

                      182, North Vijay

29   Mukul Goyal      Nagar       Coloy,    ABUPG5573D     44,100

                      Agra

                      90,          Jaora

30   Neha Nahar       Compound,             AELPN8413K     62,000

                      Indore

Nilofar Shaikh 12, Nandanvan 31 AWLPS7195P 101,900 Colony, Indore 97 Jairampur 32 Prem Balani AEZPB2436C 93,570 Colony, Indore 97 Jairampur 33 Radha Balani AEZPB2436C 99,300 Colony, Indore 106 Yash Tower, Rakesh Kumar 34 Janki Nagar AAFHR8655F 112,300 Goyal (HUF.) Ext.Indoe 182 North Vijay 35 S.C.Goyal Nagar Colony, ABUPG5575F 44,100 AGRA P-2 Asharay San deep Apartment, 36 AAKHS9044L 200,300 Agrawal HUF Manormagang Indore 25, Shardhanand 37 Sanjay Jain ASXF5442J 196,530 Marg Chawani Indore 182 North Vijay 38 Santosh Goyal Nagar Colony, ABUPG5576G 42,500 AGRA 39 Shazia Bee 12 Nandanvan AJLPB0187H 101,300 42

-: 43: -

Colony Smt. Taradevi Khaitan Bhavan

40 Kishangopal , Nagpuri Zin ABOPP1396H 130,710 Purohit Road, Akola P-2 Asharay SMT.Chitra Apartment, 41 AAIPA3251B 85,400 Agrawal Manorrnaganj Indore 90 Jaora 42 Suchita Nahar Compund, ADQPN2302K 62,000 Indore T.R.Nagwani 18-Vasudev 43 AADHN4553J 56,200 HUF Nagar- Indore 6/ 1 Old Palasia 44 Tanu Garz AFAPG3610F 442,040 Indore 630, Usha Nagar Ext., Opp.

45 Taruna Agrawal AHLPA8029.M 122,500 Dashahara Maidan, Indore Khatiwala Tank, 46 Tejumal Bagani Opp. Khariuja ABLPB5629G 80,800 Ground,Indore Varsa Agrawal 1, Parsi Mohalla, 47 W/0 Manish ACZPA5191R 2,036,150 Gali Agrawal Vastu 105, Chetak 48 Commodities Center, R.N.T. AAACV0897P 837,600 Pvt. Ltd. Marg, indore Vishal Hari Kripa 49 AINPP0589K 120,620 Kishangopal Building Behind 43

-: 44: -

     Purohit           Arnan Ka Plat-

                       Akola

                       113       Tatpatti
50   Zubeda C. Khan                            AHBPB5941K    100,700
                       Bakhal, indore

                       Shiwani       Sadan

                       Dutta         Mndir

51   Amit Shiwani      Road      ,      Gol    ANZPS4422A                -25,600

                       Chouraha            -

                       Mandsour (MP)

                       501, 5th Floor,

                       Jai           Singh,

                       Business Center,
     And Agro Food,
52                     Sahara        Intnl.,   AACCA5640D              -5,936,550
     P. Ltd.
                       Airport       Road,

                       Andheri             -

                       Mumbai

     Anuradha
53                     9/1 New Palasia         ADHPT7982N                -72,000
     Tiwari

     B.K.Maheshwar
54                     Indore                                             -7,000
     i

                       Chhota
     Bhaskar Exxoils
55                     Malsapura        Post   AAACB6091M              -2,470,000
     Ltd.
                       Siya Dewas

     Bhupendra         Darshan         Appt.

56   Chaganlal Shah Mahesh           Nagar      AAAHB9874K                 -9,000

     (HUF)             Indore

57   C.H.Ratnarao      Heyderbad                                        -399,600

                       Arjeev    Co.    Op.
     CC-HA11 Nikhil
58                     House,    Ramdev        AGMPA1045P               -761,090
     M. Agrawal
                       Nagar         Road,




                                                                             44
                                          -: 45: -

                       Ahmedabad

     CC-HI57 Giriraj   23-24         Grain
59                                            ABSPG3406F    -17,550
     K.Guota (HUF)     House - Indore

                       63/     A,    Mandi
     CC-M60 Sushil
60                     Pragan             -   AESPJ1377H   -157,870
     Kumar Jain
                       Neemuch

                       Khanna        Sugar
     CC-RJI01 Satya
                       Agency             -
61   Prakash                                  ABJPK5179J    -90,800
                       Pehowa             -
     Khanna
                       Harvana

     CC-RK74
                       59/1 Veer Hans
62   Surendra                                 APKPS0364N   -471,565
                       Road - Kanpur
     Sharma

     CC-RT51 Manoj     23 - Chamber Of
63                                            AECPC8057M   -122,430
     Kumar Chhaied     Commerce

     CC-S4 Parman      Sadar    Bazar     -
64                                            AACFP2884K   -920,150
     and Lalchand      Shivpuri

     CC-S56 Rohit      Sadar    Bazar     -
65                                            AERPA2470H    -49,500
     Agrawal           Shivpuri

                       3-4-142/5 A Flat

                       No.      30       I,
     CC-Z2 Puma
66                     Vinayka        Villa   ABHPB6263E   -181,300
     Chanda
                       Appartment,

                       Opp. Lalita

     CC-Z3 Bindu
                       19-2-226
67   Sariya                                   ACFPK6337D   -289,900
                       Bahadur Pura
     Extraction

                       Door    No.   15-1-
     CC-Z4 Shalimar
68                     470,            Old    ABQTA44271   -513,900
     Agrotech P.Ud.
                       Pilkhana           -




                                                               45
                                              -: 46: -

                         Hvderabad

                         Pharma Search,

     Glencore Grain      3rd             floor,
69                                                AACCG5797M      -784,000
     India (Bombay)      B.G.Kher     Marg,

                         Worli, Mumbai

                         E-139            Raj

     Imperial            Talkies Complex,

70   Marktrade           24                        AACI5243L      -238,600

(India) Pvt. Ptd. Shradhanand Marg, Chawni Jayantilal 3/7 Mahes 71 Chaganlal Shah AAAHJ8065N -9,000 Nagar, Indore (HUF) Jitendra 8/24 Mahesh 72 AADHJ0571N -7,800 Lakhotia (HUF) Nagar .Indore Manek Chowk, 73 K.L.Choksi -885,500 Ahmedabd 120/2 Bairathi 74 Kamal Ahuja AFIPA4008H -5,700 Colony, Indore Shiwani Sadan Dutta Mndir 75 Lalit Shiwani Road, Gol BYSPS9739P -27,200 Chouraha -


                         Mandsour (MP)

                         Chaturvedi

                         Mention         26/4
76   Laxmi Solvex                                 AAACLI082G   -20,688,000
                         A.B.            Road

                         Palasia - Indore

     Madhav Sharan Arjeev          Co.    Op.
77                                                AAEHM8835M
     Agrawal (HUF)       House,    Ramdev




                                                                      46
                                           -: 47: -

                      Nagar        Raod   -

                      Ahmedabad

     Navin Shah       3/7            Mahes
78                                                             -9,000
     (HUF)            Nagar, Indore

                      Film         Colony,
     Nova Trading
79                    RN.T.          Marg,    AAACN919SJ    -108,400
     P. Ltd.
                      Indore

     Prakash
                      3/7            Mahes
80   Chaganlal Shah                           AABHP3142D       -9,000
                      Nagar, Indore
     (HUF)

                      16 A Sanagogue

81   R.K.Impex        Street, 2nd Floor       AABCR2580A    -3,500

                      Kolkata 700001

                      SPL      -   Mangal

                      Bhawan,

82   Rajesh Gupta     Chandrapole,            AEIPG4222M   -2,141,300

                      Anaj           Mandi

                      Jaipur

                      667,     Gul    Tekti
     Satguru Oil
83                    Market          Yard,   ACUPC8733A    -937,700
     Industries
                      Pune

                      Sadar          Bazar,
84   Sharda Salvent                           AAECS6522Q   -8,407,100
                      Shivpuri

                      311 Apollo Trade

                      Center,2-B
85   Siddharth Soya                           AACCG5797M    -289,550
                      Rajgadh        Kothi,

                      Indore

                      5/0/2        Mahavir
     Sushil Kumar
86                    Nagar Phase III,        AAMHS3466C    -301,800
     Ganbhir & Sons
                      Kota




                                                                 47
                                                  -: 48: -


                            Regd.    Off:    28/2

                            Shakeshpear
        Vishal Victory
 87                         Sarani, 5th Floor,       AABCV0848F                -3,499,500
        Oiltech Pvt. Ltd.
                            Kolkata




                            Corp.              Off

                            Kanchan         Vihar,
 88
                            Kanchand Bagh,

                            Indore

 89     Yogesh Kalarani Jalgoan                                                   -42,600

                                                        Total     35,946,400   -50,952,695

A.Y.2008-09

                            Regd.              Off

                            Pharma          Serch
        Agri Core
                            House, 3rd Floor,
  1     Commodities                                  AACCG5797M    4,399,550
                            B.G,Kher        Marg,
        Pvt. Ltd. ®
                            Wodi,

                            Mumbai

                            Gumasta Nagar,                            94,900
  2     Alka Jain                                    AEOPJ7953D
                            Indore

                            37,B Nai Mandi,
  3     Aman Gupta                                   AJVPG3498A     104,000
                            Muzzafar Nagar

                            Flat     No.     101,

                            Dilpasand
        Anupama
  4                         Tower     12     Race    AJQPB4814N     125,700
        Bothra
                            Course          Road,

                            Indore

  5     ArunaJain           Gumasta Nagar,           AEOPJ7951B       97,100          `




                                                                                      48
                                              -: 49: -

                      Indore

     Banwari          Tapadiya

6    Satyanarayan     Complex,            Old    ABJPB6391B      506,900

     Bajaj            Market, Akola

     CC-HI65 Arun     201-       Star     lite
7                                                AGNPA8540J      434,000
     Agrawal          tower - Indore

CC-M63 Sheetal H. No. J-9 HIG 8 AJVPP78460 85,000 Paryani Colony - Indore CC- RT51 Manoj 23 - Chamber Of 9 AECP8057M . 32,830 Kumar Chhajed Commerce CC-S4 Sadar Bazar -

10   Parmanand                                   AACFP2884K      429,156
                      Shivpuri
     Lalchand

     CC-Y110          301-Shanti Kutir,

11   Manendra         10th              Road     APTPS8360M       74,200

     Kumar Jain       Mumbai

     CC- Y84 Dilip    7/4 - Ta1dhwai
12                                               AAEHD3495E      450,200
     KumarAngara      Bhawan

     Chanchal         97     -   Jairampur
13                                               AHDPB9907D      119,700
     Balani           Colony - Indore

                      E-l               Floor,

                      Khajanchi
     Dammani
14                    Market,                    AAEFD5777F    20,032,300
     Investments
                      K.E.M.Road

                      Bikaner

                      Tilak             Road

15   Gaurav Kothari   Rajorkar                   APAPK0167P      217,500

                      Compound Akola

                      Gumasta Nagar,
16   Gunmala Jain                                ABXPB7380P       54,000
                      Indore




                                                                            49
                                            -: 50: -

                      36,              New

                      Mandakini

17   Gurpal Khurana Enclave,            NRI    AGGPK2851F     2,006,750

                      Complex,         New

                      Delhi

                      Behind          Govt.

     Hanuman Mal      Hospital
18                                             ABJPR1893E     2,621,600
     Ranka            Gangashahar,

                      Bikaner

                      Khatiwala Tank,

                      Opp.
19   Harish Bagani                             ALZPB7943B       79,600
                      Khanuia

                      Ground,Indore

     Indermal Jain    Gumasta Nagar,
20                                             AAAHI2655F       85,600
     Huf              Indore

                      83,      Siyaganj,

                      C/oMangalFoam
21   Indira Agrawal                              AFNPA4285P    286,050
                      Induatries,

                      Indore

     Kachhawa         New             Lane,

22   Commodities (P) Gangashahar,              AACCK9672M     9,860,200

     Ltd.             Bikaner

                      90,             Joara
     Kailash N ahar
23                    Compound,                  AADHN6548K     138,200
     Huf
                      Indore

                      41/2     Gali     nos
     Kusum
24                    Malhargani,               AMVPS6193H     110,700
     Shvamsukha
                      Indore

     M/S Laxminara 596,               Usha
25                                             ABHPL8074F      314,900
     yan Ladhha       Nagar            Ext.,




                                                                          50
                                                 -: 51: -

                      Indore

                      Behind        Govt        ..

     Mahaveer         Hospital
26                                                       AGBPR3427R    4,529,300
     Ranka            Gangashahar,

                      Bikaner

                      Flat              No.304

     Mahesg           Satyam
27                                                       ABXPB7380G     115,100
     Bharani          Apartment,              122

                      Vidhya Nagar

                      E-I0,       lat    Floor,

     Maheshwari       'Khajanchi
28                                                        AALFM1538N   4,028,700
     Finance          Market,                   ,

                      Bikaner

     Mona             18           Vasudev
29                                                       AAQPN6516N      98,800

Nagwani,Indore Nagar- Indore Phar Bazar 30 Navin Khatri AKAPK8144M 2,504,700 Bikaner I Polt No. 11 31 Neha Kothari Paigha Colonv - AQFPK7267C 200,200 Secunderabad j90, Joara 32 Neha Nahar Compound, AELPN84 13K 219,700 Indore 12, Nandanvan Colony, Manik 33 Nilofar Shaikh AWLPS7195P 105,000 bugh, Road Indore Parmanand 18 Vasudev 34 AAJHP4428G 125,800 Nazwani Huf Nagar _ Indore 35 Praveen Kumar 41/2 Gali no, 5 AAIPS9095H 106,100 51

-: 52: -

     Shvamsukha        MaIhargani,

                       Indore

                       97

                       Jairampur
36   Prern Balani                             AEZPB2436C    168,800
                       Colony,

                       Indore

                       Behind       Bangali
     Punam Chand
37                     Temple,        Rani    AOQPK0151C   8,239,700
     Kachhawa
                       Bazar, Bikaner

                       97       Jairampur
38   R.K. Balani Huf                          AALHR5273H    130,831
                       Colony, Indore

                       97       Jairampur
39   Radha Balani                             AEZPB2436C    162,800
                       Colony, Indore

                       Vrandavan,

                       Nagori         Gate,

                       Mahamandir
     Radhe
40                     Road,                  ADZPR8746A   2,986,340
     Commodity
                       Parshvanath

                       Vatika           Ke

                       samne Jodhpur

                       Vrandavan,

                       Nagori         Gate,

                       Mahamandir
     Radheshyam
41                     Road,                  AAKHR4091Q    356,375
     Rathi Huf
                       Parshvanath

                       Vatika           Ke

                       sarnrie, Jodhpur

                       7th      B     Road
     Rajkumar
42                     Sardarpura             ABMPM0247L    635,751
     Mutha HUF
                       Jodlhpur




                                                                       52
                                            -: 53: -

                       106 Yash Tower,
     Rakesh Kumar
43                     Janki          Nagar    AAFHR8655F      83,200
     Goyal (Huf)
                       Ext.lndoe

                       Gumasta Nagar,
44   Ritesh Jain Huf                           AAFHR8655F      84,400
                       Indore

                       Tilak           Road

45   S.G.P. Products   Rajorkar                AABHS8266H    202,000

                       Comoound Akola

                       3338           Saket
46   Sanjay Agrawal                            AACPA2243F    4,093,930
                       Nagar,INDORE

                       New            Radha

                       Kishan          Opp.
47   Sanjay Gupta                              AEMPG3459D    103,300
                       Agrsen Bhawan

                       - Akola

                       182 North Vijay

48   Santosh Goyal     Nagar         Colony,   ABUPG5576G      60,100

                       AGRA

                       Rajunkar
     Satish Shankar
49                     Compund,        Tilak   ADEPK3084B    3,606,600
     Lal Kothari
                       Road, Akola

                       630,            Usha

50   Seerna Agrawal Nagar               Ext.   AGAPA4036D    639,400

                       Indore

                       607      -8     Shilp

     Shah Bhavesh      Tower,        Tagore
51                                             AVUPS3595F    7,013,220
     Maheshbhai        Road,         Gosown

                       Marg, Rajkot

                       Sadar          Bazar,
52   Sharda Salvent                            AAECS6522Q   7,587,267
                       Shivpuri

53   Shazia Bee        12,     Nandanvan       AJLPB0187H    105,000




                                                                         53
                                           -: 54: -

                      Colony,     Manik

                      bugh,       Road,

                      Indore

                      Tilak           Road

54   Shobha Kothari   Rajorkar                ACJPK1431E       903,400

                      Comoound Akola

     Smt.Taradevi     Khaitan Bhavan

55   Kisangopal       ,     Nagpuri     Zin   ABOPP1396H      119,300

     Purohit          Road, Akola

                      Tilak           Road

                      Rajorkar
56   Sonal Surana                             ADEPK3088P      809,660
                      Compound

                      Akola

     Sanu
                      A-22
     Commodities &
57                    Samtanagar 1st          AAJCS6745E    15,208,990
     Darivaties(P)
                      Floor Bikaner
     Ltd.

                      90,             Joara

58   Suchita Nahar    Compound,               ADQPN2302K      273,800

                      Indore

                      N-18        SAKET
59   Urmila Gupta                             ABXPG9407H      300,300
                      NAGAR

                      Gumasta Nagar,
60   Usha Jain                                ANXPJ0159M       98,000
                      Indore

                      Chhaganlal

     Vinod Kumar      Vinod       Kumar

61   Bhansali &       Bhansali Bothra         AADHV6880J      399,200

     Sons (Huf)       Chown,

                      Gangashahar

62   Virendra         78/3       Grasim       AESPB3600B   13,772,416




                                                                         54
                                         -: 55: -

     Bhandari         Staff      Colony,

                      Birlagrarn

                      Nagda

                      113        Tatpatti
63   Zubeda C. Khan                          AHBPB5941K   105,000
                      Bakhal, indore

                      Pharma Search,
     Agri Core
                      3rd           floor,
64   Commodities                             AACCG5797M                -563,035
                      B.G.Kher     Marg,
     Pvt. Ltd.
                      Worli, Mumbai

     Bhairavnath
                      A-22 Sarntanar,
65   Derivatives &                           AACCB6278Q             -15,953,500
                      Bikaner
     Commodities P.

                      Chhota
     Bhaskar                                 AAACB6091
66                    Malsapura      Post                            -4,560,172
     Exxoils Ltd.                                  M
                      Siya Dewas

CC-HI68 Pawan 71-o1d Agrawal 67 ACJPG8224H -89,200 Goyal Nagar CC-RI92 Premier 107 -Chetak 68 AABCP1890P -927,868 Industries Center - Indore (India) Ltd.

     CC-RI10l Satya   Kanha        Sugar

69   Prakash          Agency, Pehowa         ABJPK5179J               -123,242

     Khanna           [Hariyana]

                      House 1st Floor,
     CC-Y101
                      D       Souzawadi
70   Hemant Mavji                            AEPPB0187A                  -6,680
                      Shivaji      Nagar-
     Bhanushali
                      Mumbai

     CC-Y76,          Faizabad      Road
71                                           AACCR1636G                175,486
     Raghuraji Agro   Akbarpur-




                                                                           55
                                            -: 56: -

     Industries        Ambedkar

     P.Ltd.            Nagar

                       1-8-663
     CC-Z1 Good
                       Ajmabad
72   Health Agrotech                           AAACG7497G   -4,392,500
                       Industrial     Area-
     Ltd.
                       Hyedrabad

                       Plot     No.      11
     CC-Z17 Neha
73                     Paigha      Colony-     AQFPK7267C     -236,300
     Kothari
                       Secundrabad

                       Door No. 15-1 -

     CC-Z4 Shalimar 470,                 Old
74                                             ABQTA4427I   -8,537,495
     Agrotech P. Ltd. Pilkhana-

                       Hyderabad

                       805,"Prasham"

     Deepak            Kasturba
75                                             AACFD5088M     -720,000
     Enterprises       Gandhi         Road

                       Rajkot

                       Regd. Off 821-A
     Krishna Oil
76                     Urla    Ind.   Area     AAACK9866D   -44,080,640
     Extraction Ltd.
                       Raipur

                       Corp.       Off     :

                       Gangotrij

77                     Bhawan,           33

                       Manorama Ganj,

                       Indore

                       H.No.620-

     Mohit Trading     Jawahar Colony
78                                             ALXPK8761C   -3,351,197
     Co.               New          Mandi-

                       Muzaffernagar

79   Nikhil Refinery   268/20,                 AABCN5930G   -4,324,500




                                                                   56
                                             -: 57: -

        Pvt. Ltd.       Vakalpudi Light

                        House,

                        Suryaraopet

                        Village,

                        Vakalapuri,

                        Kakinda-05

                        Regd.              1A

                        Vandana,

                        Building Tolstoy

        Noble           Marg, New Delhi

        Resources       Corp. Off NBCC
  80                                                                        -9,034,200
        Trading India P. Plaza         Tower,

        Ltd.            4,5th           Floor,

                        Pushp           Vihar

                        Sector     5     New

                        Delhi

                        Krishi          Vihar
  81    S.K. Patidar                             ANHPP3311K                 -1,900,050
                        Colony, Indore

                        D-13        Ashoka

                        Road,       Adarsh
  82    Sunita Gupta                             AAXPG2465K                  0-583,500
                        Nagar Ext., New

                        Delhi

        Vasudev
  83                    Nasik                    AAHPL3027H                 -18,2611
        Lalwani

                                                    Total     123,043,116   -100,577,827

A.Y. 2009-10

                          Pharma
        Agri Core
                          Search,         3rd
   1    Commodities                              AACCG5797M      64,298
                          Floor, B.G.Kher
        Pvt. Ltd.(R)
                          Marg,         Worli




                                                                                   57
                                           -: 58: -

                         Mumbai

    CC-I62 Kiran         197,         Tilak
2                                             ACDRT2255G    357,900
    Lohar                Nager Extn.

                         H.No.620-

                         Jawaharj

    CC-MZ1 Mohit         Colony       New
3                                             ALXPK8761C   9,756,927
    Trading Co.          Mandi-

                         Muzzaffernaga

                         r

    CC-RI92 Premier
                         107,      Chetak
4   Industries (India)                        AABCP1890P   3,355,583
                         Centre Indore
    Ltd.

                         C/o       Govind

                         Palod,        6-3-

                         1199,     Vaman
    Koshalyadevi
5                        Naiklane, Uma        AJMPP5181E      90,950
    Palod
                         Nagar, Colony,

                         Rangpeth,

                         Hyderabad

                         338        Saket
6   Sanjay Agrawal                            AACPA2243F    -1,179,000
                         Nagar Indore

                         A-22
    Sonu
                         Samtanagar
7   Commodities &                             AAJCS6745E    -2,898,921
                         1st          Floor
    Darivaties(P) Ltd.
                         Bikaner

                         78/3      Grasim

    Virendra             Staff     Colony,
8                                             AESPB3600B    -1,572,000
    Bhandari             Birlagram,

                         Nagda

9   Krishna oil          Regd. Off 821-       AAACK9866D                 -805,022




                                                                               58
                                                  -: 59: -

           Extraction ltd.      A   Urla      Ind.

                                Area       Raipur

                                Corp.          off:

                                Gangotri

                                Bhawan,        33

                                Manorma ganj

                                Indore

                                Regd.           lA

                                Vandana,

                                Building,

                                Tolstoy     Marg,

           Noble Resources      New Delhi -

10         Trading India P.     Corp.         Off.                                               -2,233,798

           Ltd.                 NBCC        Plaza

                                Tower, 4,5 th

                                Floor,      Pushp

                                Vihar     Sector5

                                New Delhi

           Vasudev
11                              Nasik                  AAHPL3027H                                 0-526,012
           Lalwani


                                                                                                 -3,564,833
                                                           Total            19,275,578




      5.          Table B:

      6.

List of clients for whom confirmations were filed AY-03-04 Sl. Name of the client PAN of the client Profit to the client Loss of the client No. 59

-: 60: -

1 Akash Agrawal AACPA5203F 198,400 2 Allap Develepers AABCA8097R 750,500 3 Allap Properties AAPCA8096Q 351,100 4 Arco Enterprise AACPT9378B 749,500 5 Aruna Ashok Meckoni AAFPM7106C 83,900 6 Ashok Kantilal Meckoni AAAPM9895M 33,000 7 Basant Kumar Parwal AHBPP4197K 109,100 8 Binaj M. Halani AAFPH7682A 142,200 9 Chitra Agrawal AAIPA3251B 154,700 10 D.R.Exports AAAFD3992N 421,000 11 Dharam Chand Chordia AADPC4406D 719,000 12 Elteece Tobeco Ltd. AAACE1477E 2,853,700 13 Hindustan Continential Ltd. AABCH1575M 22,549,800 14 J.V.Vassa HUF AABHV4216J 2,421,920 15 Jasmine Ashok Meckoni AKBPM5570C 10,800 16 Kantilal Pragji Meckoni AAAPM9894L 65,000 17 Latadevi V. Bachuka AHZPB3513H 253,150 18 Jayantilal Harichand Patel AAEFJ6843J 1,006,500 19 Mahesh Khandelwal ACIPK6031F 123,600 20 Mangla B. Bachuka ABUPB2793G 106,330 21 Manubhai Nagindas Shah AFQPS1524J 169,800 22 J.B.Patel ACGPP7009J 108,800 23 S.D.Patel AFHPP3007L 51,800 24 Sumesh D. Patel ACGPP7008K 62,600 25 H.J.Patel ABOPV3604Q 54,300 26 K.J.Patel ACLPV2768D 50,200 27 R.J.Patel ACJPP7010D 614,400 28 D.J.patel ABOPV3575G 103,100 29 Mukesh v .Halani AAWPH0487L 313,350 60
-: 61: -
30 Paran Induaties Ltd. AACCP2413R 11,006,700 31 Navjeevan Etterpries Death Certi 104,400 32 Paras Manubhai Shah AFQPS1523R 51,600 33 Parul Rishi Agrawal AHNPA5321L 79,200 34 Pragesh Satish Neema ABZPN8695E 76,140 35 Prakash Nehalani ACOPN8578Q 24,700 36 Rachit Khandelwal AHWPK7219A 34,000 37 Radhika Agrawal AEBPA3648H 152,600 38 Rajavi Agrawal AADPK1889N 152,700 39 RajeshDagyayach huf AADHR8530F 46,300 40 Raksha Jayantilal Patel AAFFR5983G 1,051,400 41 Raksha.J.Thakkar ABQPT3195A 111,930 42 Ratan Chand jain AAKPJ9631J 294,850 43 Reena M.Bachka AFVPB2058R 209,700 44 Ruchi Soya Ltd. AAACR2892I 17,501,500 45 Sandeep Agrawal AACPA5201H 149,400 46 Satish Khandelwal ADQPK4934N 75,000 47 Satish Neema ABOPN2352F 237,350 48 Shah Anilkumar Balubhai ALPHS4696R 997,600 49 Shah Dinsh Chintu Bhai ALPHS4696R 965,000 50 Sharda Bhimwal ACIBP4168L 50,600 51 Sheel Khandelwal ADQPK4913R 20,800 52 Smt.Radha Devi Koolwal AHRPK1928 51,170 53 Smt.Shanti Devi Koolwal AKFPK7754A 84,950 54 South India Devi Koolwal AAGCS5522E 746,800 55 Suderlal Gupta AARPG0427C 1,130,835 56 Sandeep & Co. AAIPK6225H 862,800 57 Sunder Bai Kantilal AAFPM7354L 70,000 61
-: 62: -
58 Surendra Govind Prasad APKPS0364N 74,330 Sharma 59 Umadevi.P.Bachuka ABUPB2776R 92,940 60 Usha Khandelwal ACIPK6030E 21,000 61 Vijay Dangyach HUF Death Ceti Filled 40,200 62 Y.Jagdish Kumar Person Expired 283,730 63 Adinath Traders AAFPJ0162G -2,501,590 64 Agro Tech Foods Ltd. AAECA0303M -265,700 65 Agrawal Industries AACCA0094R -4,924,900 66 Giriaj Trading Corporation ANHPA1722F -2,515,400 67 J.R. AgroInduatries Ltd. AAACJ2956P -2,123,700 68 Khemchand Khumanchand AAKFK0737G -2,000,590 Sahu 69 Liberty Oils Mills Ltd. AAACL0888N -67,703,100 70 Parekh Foods Ltd Pune AABCT0312N -41,734,010 71 Priyanka Overseas Ltd. AAACP0070Q -1,133,500 72 Rajendra Prachudas Pobaru ACIPP9612R -1,002,450 Total 71,483,775 -125,904,940
7. AY.--2004-05 1 A.Pradeep AAJFA8925D 70,400 Commodities 2 A.Pradeep Kumar & AABPT2192B 30,200 Co.
3 Ajay Kedia HUF AAFHA1724G 51,500 4 Akamar Oils & Fat AADCA3673P 5,076,500 Ltd.
5 Alok Jain AFAPJ8476J 124,300 6 Ambika Solvex AACCA5958N 303,290 62
-: 63: -
7 Anand Kumar Gupta ADRPG1806G 61,360 8 Anil Maheshwari AGOPM2695K 49,500 9 Bhakti Foods Pvt Ltd AACCB37179 99,960 10 Bharat J.P.Bachuka AAAHB8013J 197,700 huf 11 Chitmal Agrawal ABXPA6742P 69,800 12 Ganyatri Devi AHZPB3514A 262,600 V.Bachuka 13 Good Health Agro AAACG7497G 6,365,520 Tec.Ltd.
14 Hem Chandra ADEPA3422H 100,030 Agrawal 15 Hema Kedia AFKPK2732G 51,000 16 Jagdish Prasad ABUPB2786P 202,770 P.Bachuka HUF 17 Kishore Vishwanath AFBPB2057A 301,710 Bachuka 18 Latadevi v. AHZPB3513H 267,400 Bachuka 19 Iila Devi J.Bachuka AHZPB3513H 249,900 20 LEO Edibles & Fats AAACL3059J 1,435,500 21 LEO Global Stock P AAANL1525N 1,128,900 Ltd.
22 Mahesh Kedia HUF AAFHM5432F 51,000 23 Magal B.Bachhuka ABUPB2793G 269,000 24 Manish Kumar V. AAHHM6993B 301,710, Bachhuka 25 Narayan ji Gupta ACFPG8519F 1,339,300 26 Nav Maharashtra AAACN9941J 864,750 Chhakan Oil Mil 63
-: 64: -
27 Navjeevan Death Certi 691,550 Enterpries 28 Nilesh Laddha Abhpl8074F 104,950 29 Pankaj Vasant AAAHV6959B 301,710 Kumar Bachhuka 30 Prakash Foods Ltd. AABCT0312N 6,700,050 31 Pawan Kumar AABHP0411K 203,600 J.P.Bachuka HUF 32 Pradeep Jamadas AAAHP5712Q 78,000 Thakar HUF 33 Reena M. Bachuka AFVPB2058R 253,600 34 Rohan Ashok Kumar ADEPN0632J 30,500 Neema 35 Sardar Devevder AAEHD3353B 66,500 Singh Rajpal HUF 36 Sardar Joginder AADHJ8745C 66,500 Singh Rajpal HUF 37 Sardar Kawaljeet AAGHKO118M 66,500 Singh Rajpal Huf 38 Sardar Satpal Singh AANHS9348L 66,500 Rajpal HUF 39 Shri Ganesh AALFS7894K 304,380 Investment P.Ltd 40 South India Edible AAGCS5522E 267,275 P.Ltd.
41 Sudha Kedia AFKPK2731Fy 51,000 42 Sunderlal Gupta AAHCS6857K 2,951,300 Investment P.Ltd.
43 Sunil Kedia HUF AAFHA1724G 53,500 44 Surendra Sharma APKPS0364N 156,270 64
-: 65: -
Kanpur 45 Swati Kedia HUF ABLPJ6826D 249,900 46 Uma Devi V. ABUPB2776R 249,800 Bachuka HUF 47 Vasant Kumar P.D. AAAHV6959B 202,600 Bachuka HUF 48 Vishal Kishangopal AINPP0589K 102,600 Purohit 49 VishwanathP.D. AAAHV6960L 203,600 Bachuka HUF 50 Agrwal Industries AACCA0094R -4,212,100 51 And Agro Food Ltd. AACCA5640D -3,172,200 52 Bhaskar Exxoil Ltd AAACB6091M -4,526,800 53 D.R.Export AAAFD3992N -486,400 54 Laxmi Solvex AAACL1082G -15,517,150 55 Priyanka Overseas AAACP0070O -1,690,000 Ltd 56 Sarvottam AAFCS7200J -1,163,700 Veg.Oil.Ref.P.Ltd.
57 Sharda Solvent AAECS6522Q -1,544,100 58 Y.jagdish Kumar Expired -4,196,200 Total 32,747,905 -36,508,650 AY-2005-06 1 Adan Export Ltd AABCA2804L 97,000 2 Alok Jain AFAPJ8447J 149,880 3 Anil Industries AGOPM2695K 105,350 4 Anita Magal AITPM0699Z 74,670 5 Anuj Agrawal ABXPA1794M 959,500 65
-: 66: -
6 D.R.Export AAAFD3992N 2,105,000 7 Gaurav Kothari APAPK0167P 399,000 8 Jimmy Agrawal AREPS4677C 49,260 9 Lovely Agrawal ADLPA2637D 75,870 10 M/s Laxminarayan ABHPL8074F 249,820 Laddha 11 Nakoda AABCN4954C 203,400 Commodities Pvt Ltd 12 Narayanji Gupta ACFPG8519F 200,500 13 Om Industries AAAFA3073P 6,491,300 14 Rajendra ACIPP9612R 1,986,500 Prabhudas Pobaru 15 Rajendra AAJHR3661K 79,490 Rameshwardayal Magal 16 Rajesh Patni AKGPP1548L 1,323,490 17 Radhika Agrawal AGSPA0088Q 77,170 18 Ruchi Soya Ltd AAACR2892I 18,857,300 19 Shri Hans Traders AAPPN8289D 696,100 20 Smt. Sita devi AGDPM3556J 89,300 Agrawal 21 Sangeeta Magal AGDTM3347B 81,590 22 Veibhav Laxmi AAZPK2156L 527,600 Investment 23 VijayRameshhwar AADHV8779N 75,600 Dayal Magal HUF 24 Vinod Rameshwar AADHV8778B 80,690 Dayal Magal HUF 25 Raghunath Agency AAACR0362F 1,707,410 66
-: 67: -
26 Saurav Agarwal ADJPA9811F 49,560 27 Akalmar Oil & Fat AADCA3573P -5,364,160 LTd 28 And agro Foods Ltd. AACCA5640D -794,450 29 Bhaskar Exxoil Ltd. AAACB6091M -3,130,700 30 Dayal agro AABCD2713R -493,000 Praoduct Ltd 31 Good Health Agro AAACG7497G -830,970 Tec Ltd 32 Laxmi Solvex AAACL1082G -16,905,200 33 Madhu Trading Co. ABLPA2872L -150,000 34 Maharashtra Oil AABCM5897M -390,400 Extruction Pvt Ltd 35 Mahendra Agrawal AFJPA9365C -117,921 36 Padmawati Oils Pvt -261,700 Ltd.
37 Parekh Foods Ltd. AABCT0312N -4,107,050 38 R.C.G. Finance AAACR9505L -4,116,950 Pvt.Ltd.
39 Smt.Kalawati Not Having 1,312,350 Surjan 40 South India Edible AAGCS5522E -399,000 Oils Delhi 41 Y. Jagdish Kumar Expired -15,000 Total 36,792,350 -38,388,851 AY-2006-07 1 Ankita Bagani AIYPB3894M 101,000 2 B.S.Traders AADHP5284Q 10,250 3 Dipika Bagani AIYPB3895L 102,600 67
-: 68: -
4 Dipti Bagani AIYPB3892P 106,800 5 Kailash Nahar Huf AADHN6548K 155,360 6 Nova Trading Pvt. AAACN9195J 2,696,350 Ltd 7 Puja Koolwal ADZPK7635H 94710 8 Puja Vaishya ABJPV5077G 127,400 9 Rakesh Kumar AAFHR8655F 61,100 Goyal 10 Sandeep Vaishya ABJPV5076H 30,600 11 Shakun Vaishya ABCPV3508P 168,400 12 Suchita Nahar ADQPN2302K 123,990 13 Anuradha Tiwari ADHPT7982N 111,500 14 Bhupendra AAAHB9874K 134,000 Chaganlal Shah HUF 15 Smt.Saroj Soni ATGPS4238P 13,800 16 Gaurishankar AACHG5560R 21,600 Bhavsar HUF 17 Gaudhandas Soni AHCPS6179H 74,000 18 Agrawal Industris AACCA0094R 335,000 19 Amit Shivani ANZPS4422Q 225,410 20 Anant Steel Pvt.Ltd AACCA1283E 2,000,700 21 Anil Neema HUF AAHHA4650F 103,620 22 Ankita Bhagani AIYPB3894M 101,000 23 Anuj Agrawal ABXPA1794M 1,515,950 24 Arpit Shah AEBPJ3556P 145,600 25 Arun Agrawal AGNPA8540J 111,300 26 Arunaben Shah ADUPS9492D 77,100 27 Aruna Jain AEOPJ7951B 103,666 68
-: 69: -
28 Alka Jain AEOPJ7953 93,510 29 Asha Devi Goyal ADZPG7760K 101,180 30 Narendra Kumar ADAPA0131B 1,022,200 Agrawal 31 Bhaskar Exxoil Ltd. AAACB6091M 875,750 32 Bhavna Jain ADZPG7761 101,180 33 Bhavna Goyal ABGPJ2149 180,180 34 And Agro Foods AABCA2804L -63,000 Ltd.
35 And Agro Foods AACCA5640D -354,350 Ltd.
                           Total                   11,226,806   -417,350

       AY-2007-08




1    Akash Agrawal          AACPA5203F               329,750

2    Anil Agrawal           AAAHA 1454L              200,300

3    CC-HsSuresh            AAPHS9925M                56,000

     Chandra Agrawal

4    CC-HD51 Hasmukh        ADRPP6712E                50,200

     Bhai Pachal

5    CC-M63 Sheetal         AJVPP7846D               137,180

     Paryani

6    CC-R160 Mohit          AHOPB2399E               291,520

     Betala

7    CC-R161 Vinay          ACAPV2144A               290,200

     Betala

8    CC-R165 Omprakesh      AEJPA3163M                 4,550

     Agrawal




                                                                69
                                          -: 70: -

9    CC-R192 Primier         AABCP1890P                636,600

     Industries India Ltd.

10   CC-RS51 Surendra        ACQPK3153N                105,000

     Kumar Agrawal

11   Vikash Shivhare         Not Furnish by client      16,900

                             Copy of KYC Encl.

12   CC-Y22 Deepk Jain       ABMPS1728A                 60,700

13   CC-Y7 Rakesh Jain       AEVPJ3441F                 30,100

14   CC-Z17 Neha Kothari     AQFPK7267C                361,600

15   CC-Z8 Sanjay Shah       ABTPS 7390H               498,520

16   Chandra Mohan           AIRPD2282N                 15,300

     Damani

17   Essance Investment      AABCE3874A                105,000

     & Finance Ltd.

18   Glencore Grain India    AACCG5797M                654,000

     (Indore)

19   Good Health Tech        AAACG7497G                581,060

     P.Ltd.

20   Hasmukh Bhai            ADRPP6712E                100,200

     Panchal

21   Hira Agro Indutries     AAAFH8616B               2,555,750

     Akola

22   Idea International      AABCH1527J               1,858,700

     P.Ltd.

23   K.S.Oils Ltd.           AABCK3119J                120,500

24   Kailash Nahar           AADHN6548K                 70,200

25   Krishna Kumae           AAXPG2465K               1,125,150

26   M/s Laxminarayanji      ABHPL8074F                206,600

     Laddha

27   Mohit Trading Co.       ALXPK8761C              20,202,800




                                                                  70
                                         -: 71: -

28   Mona Nagwani          AAQPN6516N               109,400

29   Mukul Goyal           ABUPG5573D                44,400

30   Neha Nahar            AELPN8413K                62,000

31   Nilofar Shaikh        AWLPS7195P               101,900

32   Prem Balani           AEZPB2436C                93,570

33   Radha Balani          AEZPB2436C                99,300

34   Rakesh Kumar Goyal    AAFHR8655F               112,300

     huf

35   S.C.Goyal             ABUPG5575F                44,100

36   Sandeep Agrawal       AAKHS9044L               200,300

37   Sanjay Jain           ASXF5442J                196,530

38   Santosh Goyal         ABUPG5576G                42,500

39   Shazia Bee            AJLPB0187H               101,300

40   Smt.TradeviKISHAN     ABOPP1396H               130,710

     GOPAL pUROHIT

41   Smt, Chitra Agrawal   AAIPA3251B                85,400

42   Suchita Nahar         ADOPN2302K                62,000

43   T.R.Nagwani HUF       AADHN4553J                56,200

44   Tanu Garg             AFAPG3610F               442,040

45   Taruna Agrawal        AHLPA8029M               122,500

46   Tejumal Bagani        ABLPB5629G                80,800

47   Varsha Agrawal W/o    ACZPA5191R              2,036,150

     Manish Agraweal

48   Vastu Commodities     AAACV0897P               837,600

     P.Ltd.

49   Vishal Kishangopal    AINPP0589K               120,620

     Purohit

50   Zubeda C.Khan         AHBPB5941K               100,700

51   Amit Shiwani          ANZPS4422A                            -25,600

52   And Agro Foods        AACCA5640D                          -5,936,550




                                                                 71
                                         -: 72: -

     P.Ltd.

53   Anuradha Tiwari        ADHPT7982N               -72,000

54   Bhaskar Exxoila Ltd.   AAACB6091M             -2,470,000

55   Bhupendra              AAAHB9874K                 -9,000

     Chaganlal Shah HUF

56   CC-HA11 Nikhil M       AGMPA1045P              -761,090

     Agrawal

57   CC-HI57Giriraj         ABSPG3406F               -17,550

     K.Gupta HUF

58   CC-M60 Sushil          AESPJ1377H              -157,870

     Kumar Jain

59   CC- RJ101 Satya        ABJPK5179J               -90,800

     Prakash Chhajed

60   CC-RK74 Surendra       APKPS0364N              -471,565

     Sharma

61   CC-RTS1 Manoj          AECPC8057M              -122,430

     Kumae Chhajed

62   CC-Parmanand           AACFP2884K              -920,150

     Lalchand

63   CC-SS6 Rohit           AERFA2470H               -49,500

     Agrawal

64   CC-Z2 Purna Chanda     ABHPB6263E              -181,300

65   CC-Z3 Bindu Sariya     ACFPK6337D              -289,900

     Extraction

66   CC-Z4 Shalimar         ABOTA4427I              -513,900

     Agrotech P.Ltd.

67   Glencorial Grain       AACCG5797M              -784,000

     India Bombay

68   ImperialMarktraade     AACI5243L               -238,600

     India P Ltd. HUF




                                                     72
                                           -: 73: -

69    Jayantilal Chagalal      AAAHJ8065N                              -9,000

      Shah HUF

70    Jitendra Lakhotia        AADHJ0571N                              -7,800

      Shah HUF

71    Kamal Ahuja              AFIPA4008H                              -5,700

72    Lalit Shivani            BYSPS9739P                             -27,200

73    Laxmi Solvex             AAACL1082G                         -20,688,000

74    Madhav Sharma            AAEHM8835M                             -61,640

      Agrawal

75    Nova Trading P.Ltd.      AAACN9195J                           -108,400

76    Prakash Chagalal         AABHP3142D                              -9,000

      Shah HUF

77    R.K.Impex                AABCR2580A                              -3,500

78    Rajesh Gupta             AEIPG4222M                          -2,141,300

79    Satguru Oil              ACUPC8733A                           -937,700

      Industries

 80   Sharda Salvent           AAECS6522Q                          8,407,100

 81   Siddharth Soya           AACCG5797M                           -289,550

 82   Sushil Kumar             AAMHS3466C                           -301,800

      Ganbhir & Sons

 83   Vishal Victory Oiltech   AABCV0848F                          -3,499,500

      Pvt. Ltd.

                               Total                 35,946,400   -49,608,995

A.Y.- 2008-09

 1    Agri Core Commodities Pvt.       AACCG5797M     4,399,550

      Ltd.

 2    Alka Jain                        AEOPJ7953D       94,900

 3    Aman Gupta                       AJVPG3498A      104,000

 4    Anupama Bothra                   AJQPB4814N      125,700

 5    Aruna Jain                       AEOPJ7951B       97,100




                                                                     73
                                      -: 74: -

6    Banwari Satyanarayan Bajaj   ABJPB6391B      506,900

7    CC-HI65 Arun Agrawal         AGNPA8540J      434,000

8    CC-M63 Sheetal Paryani       AJVPP7846D       85,000

9    CC-RT51 Manoj Kumar          AECP8057M        32,830

     Chhajed

10   CC-S4 Parmanand Lalchand     AACFP2884K      429,156

11   CC-Y110 Mahendra Kumar       APTPS8360M       74,200

     Jain

12   CC-Y84 Dilip Kumar Angara    AAEHD3495E      450,200

13   Chanchal Balani              AHDPB9907D      119,700

14   Dammani Investments          AAEFD5777F    20,032,300

15   Gaurav Kothari               APAPK0167P      217,500

16   Gunmala Jain                 ABXPB7380P       54,000

17   Gurpal Khurana               AGGPK2851F     2,006,750

18   Hanuman Mal Ranka            ABJPR1893E     2,621,600

19   Harish Bagani                ALZPB7943B       79,600

20   Indermal Jain HUF            AAAHI2655F       85,600

21   Indira Agrawal               AFNPA4285P      286,050

22   Kachhawa Commodities (P)     AACCK9672M     9,860,200

     Ltd.

23   Kailash Nahar HUF            AADHN6548K      138,200

24   Kusum Shyamsukha             AMVPS6193H      110,700

25   M/s.Laxminarayan Ladhha      ABHPL8074F      314,900

26   Mahaveer Ranka               AGBPR3427R     4,529,300

27   Mahesh Bharani               ABXPB7380G      115,100

28   Maheshwari Finance           AALFM1538N     4,028,700

29   Mona Nagwani, Indore         AAQPN6516N       98,800

30   Navin Khatri                 AKAPK8144M     2,504,700

31   Neha Kothari                 AQFPK7267C      200,200

32   Neha Nahar                   AELPN8413K      219,700




                                                             74
                                       -: 75: -

33   Nilofar Shaikh                AWLPS7195P      105,000

34   Parmanand Nagwani HUF         AAJHP4428G      125,800

35   Praveen Kumar Shyamsukha      AAIPS9095H      106,100

36   Prem Balani                   AEZPB2436C      168,800

37   Punam Chand Kachhawa          AOQPK0151C     8,239,700

38   R.K. Balani HUF               AALHR5273H      130,831

39   Radha Balani                  AEZPB2436C      162,800

40   Radhe Commodity               ADZPR8746A     2,986,340

41   Radheshyam Rathi HUF          AAKHR4091Q      356,375

42   Rajkumar Mutha HUF            ABMPM0247L      635,751

43   Rakesh Kumar Goyal (HUF)      AAFHR8655F       83,200

44   Ritesh Jain HUF               AAFHR8655F       84,400

45   S.G.P.Products                AABHS8266H      202,000

46   Sanjay Agrawal                AACPA2243F     4,093,930

47   Sanjay Gupta                  AEMPG3459D       60,100

48   Santosh Goyal                 ABUPG5576G       60,100

49   Sathish Shankar Lal Kothari   ADEPK3084B     3,606,600

50   Seema Agrawal                 AGAPA4036D      639,400

51   Shah Bhavesh Maheshwari       AVUPS3595F     7,013,220

52   Sharda Salvent                AAECS6522Q     7,587,267

53   Shazia Bee                    AJLPB0187H      105,000

54   Shobha Kothari                ACJPK1431       903,400

55   Smt. Taradevi Kisangopal      ABOPP1396H      119,300

     Purohit

56   Sonal Surana                  ADEPK3088P      809,660

57   Sonu Commodities &            AAJCS6745E    15,208,990

     Darivaties (P) Ltd.

58   Suchita Nahar                 ADQPN2302K      273,800

59   Urmila Gupta                  ABXPG9407H      300,300




                                                              75
                                       -: 76: -

60   Usha Jain                     ANXPJ0159M       98,000

61   Vinod Kumar Bhansali &        AADJV6880J      399,200

     Sons (HUF)

62   Virendra Bhandari             AESPB3600B    13,772,416

63   Zubeda C. Khan                AHBPB5941K      105,000

64   Agri Core Commodities Pvt.    AACCG5797M                   -563,035

     Ltd.

65   Bjaoravnathj Derivatives &    AACCB6278Q                 -15,953,500

     Commodities P.

66   Bhaskar Exxoils Ltd.          AAACB6091M                  -4,560,172

67   CC-HI68 Pawan Goyal           ACJPG8224H                     -89,200

68   CC-RI92 Premier Industries    AABCP1890P                   -927,865

     (India) Ltd.

69   CC-RI101 Satya Prakash        ABJPK5179J                   -123,424

     Khanna

70   CC-Y101 Hemant Mavji          AEPPB0187A                      -6,680

     Bhanushali

71   CC-Y76 Raghuraji Agro         AACCR1636G                  -1,175,486

     Industries P. Ltd.

72   CC-Z1 Good Health Agrotech    AAACG7497G                  -4,392,500

     Ltd.

73   CC-Z17 Neha Kothari           AQFPK7267C                   -236,300

74   CC-Z4 Shalimar Agrotech P.    ABQTA4427I                  -8,537,495

     Ltd.

75   Deepak Enterprises            AACFD5088M                   -720,000

76   Krishna Oil Extraction Ltd.   AAACK9866D                 -44,080,640

77   Mohit Trading Co.             ALXPK8761C                  -3,351,197

78   Nikhil Refinery Pvt. Ltd.     AABCN5930G                  -4,324,500

79   Noble Resources Trading                                   -9,034,200

     India P. Ltd.




                                                                 76
                                                     -: 77: -

     80       S.K.Patidar                        ANPP3311K                                     -1,900,050

     81       Sunita Gupta                       AAXPG2465K                                     -583,500

     82       Vasudev Lalwani                    AAHPL3027H                                      -18,261

                                                 Total                      123,043,116     -100,577,827

     A.Y. 2009-10

      1       Agri Core Commodities Pvt.         AACCG5797M                        64,298

              Ltd. (R)

      2       CC-I62 Kiran Lohar                 ACDRT2255G                       357,900

      3       CC-MZ1 Mohit Trading Co.           ALXPK8761C                     9,756,583

      4       CC-RI92 Premier Industries         AABCP1890P                     3,355,583

              (India) Ltd.

      5       Koshalyadevi Palod                 AJMPP5181E                        90,950

      6       Sanjay Agrawal                     AACPA2243F                     1,179,000

      7       Sonu Commodities &                 AAJCS6745E                     2,898,921

              Darivaties (P) Ltd.

      8       Virendra Bhandari                  AESPB3600B                     1,572,000

      9       Krishna Oil Extraction Ltd.        AAACK9866D                                     -805,022

     10       Noble Resources Trading                                                          -2,233,798

              India P. Ltd.

     11       Vasudev Lalwani                    AAHPL3027H                                     -526,012

                                                 Total                         19,275,578     -3,564,833

       8.


       9.         Table - C

List of client in whose cases confirmation and ITR have been filed A.Y. 2003-04 Sl.N Name of the client Pan of the Profit to the As per Loss to the o. client client Income tax client return of 77
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the client Gross Returned Speculation Income Income profit / loss shown in ITR 1 J.B.Patel ACGPP7009J 108,800 133,156 128,700 --- 2 Sumesh D. Patel ACGPP7008K 62,600 88,794 79,180 --- 3 R.J.Patel ACPP7010D 6,14,400 108,817 101,900 --- 4 Prakash Nehalani ACOPN8578Q 24,700 55,410 55,410 24,700 5 Rajesh Jayantilal AAFFR5983G 1,051,400 2,380 2,380 ---

Patel Total 1,861,900 AY - 2004-05 1 Anita Mangal AITPM0699Z 74,670 94,530 94,530 74,670 2 M/s. ABHPL8074F 249,820 192,480 141,284 249,820 Laxminarayan Laddha 3 Rajendra AAJHR3661K 79,490 15,600 15,600 ---

Rameshwardayal Mangal HUF 4 Smt. Sitabai AGDPM3356J 89,300 97,500 97,500 ---

Agrawal 5 Sangeeta Mangal AGDTM3347B 81,590 82,729 82,729 --- 6 Vijay AADHV8779N 75,600 60,440 60,440 35,000 Rameshwardayal Mangal HUF 7 Vinod AADHV8778B 80,690 53,130 53,130 ---

Rameshawar Dayal Mangal HUF 78

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A.Y-
200 6-07 1 Kailash Nahar AADHN6548K 155,360 169,213 166,040 155,360 HUF 2 Suchita Nahar ADQPN2302K 123,990 172,040 140,630 123,990 3 Amit Shivani ANZPS4422Q 225,410 289,972 245,620 ---

A.Y.2007-08 1 CC-H5 Suresh AAPHS9925M 56,000 107,070 107,070 211,885 Chandra Agrawal (HUF) 2 Essence AABCE3874A 105,000 85,877 85,877 105,000 Investment & Finance Ltd.

3 Kailash Nahar AADHN6548K 70,200 229,207 224,150 176,617 HUF 4 Mona Nagwani AAQPN6516N 109,400 1,203,720 1,203,720 124,400 5 Mukul Goyal ABUPG5573D 44,100 132,985 91,199 44,100 6 Nilofar Shaikh AWLPS7195P 101,900 140,410 140,410 101,900 7 S.C.Goyal ABUPG5575F 44,100 137,719 100,530 44,100 8 Santosh Goyal ABUPG5576G 42,500 151,669 120,185 42,500 9 Shazia Bee AJLPB0187H 101,300 147,330 147,330 101,300 10 T.R.Nagwani HUF AADHN4553J 56,200 110,077 110,080 56,200 11 Tanu Garg AFAPG3610F 442,040 426,908 364,220 --- 12 Tejumal Bagani ABLPB5629G 80,800 125,481 109,200 80,800 13 Zubedaj C. Khan AHBPB5941K 100,700 90,740 90,700 --- 14 Amit Shiwani ANZPS4422A -25,600 15 CC-HA 11 Nikhil AGMPA1045P -761,090 M Agrawal 16 Lalit Shiwani BYSPS9739P -27,200 79

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17 Vishal Victory AABCV0848F -3,499,500 Oiltech Pvt. Ltd.

Total 1,354,240 -4,313,390 A.Y. 2008-09 1 Aman Gupta AJVPG3498A 104,000 233,556 143,560 103,577 2 Anupama Bothra AJQPB4814N 125,700 147,004 147,000 70,000 3 CC-HI65 Arun AGNPA8540J 434,000 1,718,000 1,618,000 --- Agrawal 4 Gaurav Kothari APAPK0167P 217,500 337,285 237,290 5 Gunmala Jain ABXPB7380P 54,000 113,780 99,980 54,000 6 Hanuman Mal ABJPR1893E 2,621,600 242,736 137,870 2,619,309 Ranka 7 Harish Bagani ALZPB7943B 79,600 100,055 84,660 --- 8 Indermal Jain HUF AAAHI2655F 85,600 114,860 100,260 85,600 9 Kailash Nahar AADHN6548K 138,200 242,234 136,170 133,700 HUF 10 Kusum AMVPS6193H 110,700 375,010 275,010 110,700 Shyamsukha 11 M/s ABBPL8074F 314,900 279,121 126,520 314,227 Laxminarayan Laddha 12 Mahaveer Ranka AGBPR3427R 4,529,300 990,783 858,470 1,483,899 13 Maheshwari AALFM1538N 4,028,700 -2,849 -2849 -2,849 --

Finance 14 Mona Nagwani, AAQPN6516N 98,800 177,654 139,200 108,800 Indore 15 Navin Khatri AKAPK8144M 2,504,700 196,699 146,990 --- 16 Nilofar Shaikh AWLPS7195P 105,000 143,168 143,170 105,800 17 Parmanand AAJHP4428G 125,800 146,000 146,000 135,800 Nagwani HUF 80

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18 Praveen Kumar AAIPS9095H 106,100 401,519 293,377 106,100 Shyamsukha 19 Prem Balani AEZPB2436C 168,800 339,230 239,930 173,000 20 Punam Chand AOQPK0151C 8,239,700 274,580 174,580 2,691,510 Kachhawa 21 R.K.Balani HUF AALHR5273H 130,831 207,872 109,872 130,832 22 Radha Balani AEZPB2436C 162,800 290,175 190,175 167,200 23 Radhe Commodity ADZPR8746A 2,986,340 217,651 111,690 -60,063 24 Radheshyam Rathi AAKHR4091Q 356,375 217,651 111,690 -60,063 HUF 25 Rakesh Kumar AAFHR8655F 83,200 165,243 165,240 98,200 Goyal (HUF) 26 S.G.P. Products AABHS8266H 202,000 241,788 141,790 201,617 27 Sanjay Gupta AEMPG3459D 103,300 283,146 163,820 103,177 28 Santosh Goyal ABUPG5576G 60,100 166,550 120,066 60,100 29 Satish Shankar Lal ADEPK3084B 3,606,600 1,021,960 921,960 860,032 Kothari 30 Shazia Bee AJLPB0187H 105,000 105,070 105,070 105,000 31 Shobha Kothari ACJPK1431E 903,400 357,050 357,050 200,437 32 Smt. Taradevi ABOPP1396H 119,300 147,018 147,018 119,148 Kisangopal Purohit 33 Sonal Surana ADEPK3088P 809,660 259,419 159,420 --- 34 Sonu Commodities AAJCS6745E 15,208,990 -2,432,601 -2,432,601 ---

& Darivaties (P) Ltd.

35 Suchita Nahar ADQPN2302K 273,800 270,495 239,080 162,971 36 Virendra Bhandari AESPB3600B 13,772,416 1,218,282 1,118,280 13,015,700 37 Zubeda C. Khan AHBPB5941K 105,000 105,031 105,030 105,000 38 Bhairavnath AACCB6278Q -15,953,500 Derivatives & 81

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Commodities P. Ltd.

39 CC-RI92 Premier AAACK9866D -927,868 Industries (India) Ltd.

40 Krishna Oil AAACK9866D -44,080,640 Extraction Ltd.

Total 63,181,812 -60,962,008 A.Y. 2009-10 1 CC-RI92 Premier AABCP1890P 3,335,583 NIL NIL --- Industries (India) Ltd.

2 Sonu AAJCS6745E 2,898,921 911,453 NIL --- Commodities & Darivaties (P) Ltd.

3 Virendra AESPB3600D 1,572,000 1,179,870 1,079,870 1,839,500 Bhandari 4 Krishna Oil AAACK9866D 7,276,636 7,274,090 -- Extraction Ltd.

5 Krishna oil AAACK9866D -805,022 Extraction Ltd.

4.2.5 I have considered the issue. What I find addition has been made by the A.O. just because assessee could not furnish the ITRs and balance sheet of the clients for whom the assessee had effected transactions ( sauda) through the NBOT exchange. In 82

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my considered view this requirement has casted a very heavy burden on the assessee to collect the ITR's of all his clients and to demonstrate that the income/ profit passed on to that client has been reflected in their respective returns. The basic question arises that in case the client has not shown that income in his return then who is to be faulted- assessee or the client ? Whether in that circumstances, that profit / income which was passed on through banking channels to the client could be assessed in the hand of the assessee. Admittedly, the assessee had filed the copies of bank statement in support of its claim that the funds on account of settlement of various saudas for and on behalf of the clients, were transferred from each others account through banking channel only. Not a single case has been pointed out by the A.O. against this claim of the assessee. The assessment proceedings. I find the A.O. had not given any weightage to the confirmations filed before him. These confirmations, though furnished in respect of only few clients, were on the copy of the 83
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ledger accout as appearing in the books of accounts of the assessee. The concerned clients had duly signed those accounts. They had also mentined their PAN. The A.O. however, preferred to ignore those documents for the reasons that assessee could not submit evidence of recognition of income by those clients i.e. their ITRs. In my considered opinion, scuh confirmation together with the bank statement eveindencing the transfer of fund through banking channel itself should have been taken as adequate evidence in support of transfer of profit to the clients.
4.2.6 Nevertheless, as discussed in para 4.2.4 above, the assessee has further filed some of the confirmations and ITRs of the clients as additional evidence. Those additional evidences have been admitted by me. Based on the confirmations and ITRs the information in the Table-A, Table-B and Table-C have been prepared and the same finds place in para 4.2.4 itself. From the Table-C, it is observed that all those clients, whose ITRs were collected by the 84
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assessee, have by and large reflected their NBOT profit in their respective returns. Though, even at this stage, the assessee has not been in a position to collect the ITRs of all their clients, but whatever evidences have been filed, does evidence the fact that assessee had done the speculative business for and on behalf of clients also. I also notice that the A.O. has been inconsiderate to the extent that he made addition in respect of the profits passed on to the clients but did not consider at all the instances where clients had suffered losses which had resulted increase in the assessee's total income. The table no.3 (in para 4.2) details the amount of profit and losses to the clients. It is observed that in A.Y. 2003-04, the total profit passed on to the client was Rs. 7,20,04,485/- as against the total losses (to the clients) of Rs. 13,18,65,030/-. This means through the transactions for and on behalf of the clients, the assessee is benefited to the extent of Rs.5,98,60,545/-. Similarly, the net effect of profit and losses to the clients in A.Y.2004-05 resulted increase of 85
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total income of the assessee to the extent of Rs. 1,88,03,135/-. In A.Y. 2007-08 also the losses to the clients were more than the profit passed on the clients which resulted net increase of total income of the assessee to the extent of Rs. 1,75,62,045/-. In A.Ys. 2005-06, 2006-07,2008-09 and 2009-10, the situation had been reversed i.e. profits to the clients were more that the losses to the clients, which had resulted into the decrease of total income of the assessee to the extent of Rs. 1,50,58,879/-, Rs.1,08,09,456/-, Rs.2,11,95,989/- and Rs.34,23,015/-. In overall, during A.Ys.2003-04 to 2009-10, the profit to the client amounted Rs.31,56,27,284/- and the losses to the client amounted Rs.36,20,58,371/- meaning thereby that assessee was benefited to the extent of Rs. 4,57,38,386/-.
4.2.7 Keeping in view the facts and the observations made by me in para 4.2.5 and 4.2.6 above, I do not find any merit in the A.O.'s approach for reaching to the conclusion that the profits transferred to 86
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the clients was to be taxed in the hands of the assessee. However, based on address & PAN, the A.O. may pass on the information as regards to the clients' profit to the concerned Assessing officers ( of all those clients) to enable the latter to verify from the relevant ITRs of the clients whether the corresponding income has been shown by them in their returns or not. In case it is found that any client has not shown the corresponding income in their ITR, then the A.O. concerned would be free to proceed against that client and resort to remedial action at least for those Assessment year for which limitation has not expired yet. In the case of the present assessee, the addition so made stands deleted. The table below reflects the quantum of addition and the relief on this account for A.Ys. 2003-04 to 2009-10.

S.No. Appeal No.         A.Y.      Amount     of Amount         of

                                   addition       relief

M/s. Essence Commodities ltd.
87
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1 IT-392/10-11 2003-04 72,004,485 72,004,485 2 IT-393/10-11 2004-05 34,393,845 34,393,845 3 IT-394/10-11 2005-06 36,542,530 36,542,530 4 IT-395/10-11 2006-07 11,226,806 11,226,806 5 IT-396/10-11 2007-08 32,697,950 32,697,950 6 IT-397/10-11 2008-09 121,773,816 121,773,816 7 IT-398/10-11 2009-10 6,987,848 6,987,848
6. Aggrieved by the above order of CIT(A), the Revenue is in further appeal before us.
7. Shri Prakash Jain, C. A. appeared on behalf of the assessee and contended as under :-
(1) The appellant company is incorporated on 02/12/1994 having PAN AAACE3879L and since in inception assessed to tax.
(2) That since Feb 2000 appellant company is engaged in the future business and member of following exchange.

Name of Exchange Nature of Activity Multi Commodity (i) Brokering income on 88

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Exchange of India behalf of transaction Limited (MCX) entered for client registered with Exchange .
                                  (ii) Self Trading of
                                  company
      National Commodity &        -do-
      Derivative Exchange
      Limited (NCDX)
      National Board of           (i) Brokering Income on
      Trade (N.B.O.T)             behalf of transaction
                                  entered for client.

                                  (ii) Self Trading.


(3) That a search and seizure operation was carried at the business premises of the company and residential premises of its directors on 02/05/2008.

That during the search no incriminating document was found by the search party which is evident from the assessment orders against which present appeals and cross objections are filed. (4) That a search and seizure operation was also carried by the official of the income tax Department at the business premises of the company and residential premises of directors on 13.11.2002 consequent there to a block assessment u/s 143(3) 89

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read with Section 158 BC of Income-tax Act, 1961, for the period 01.04.1996 to 13.11.2002 was completed by the DCIT, 1(1), Indore, on 30.11.2004 a Xerox copy of the said assessment order is available in compilation Vol.11 page No. 2808 to 2863. (5) That there is no change in the business operations and method of accounting of future transaction and mode of apprentice. Thus, the facts of mode of future transaction, method of their accounting and mode of apprentice for recognizing future transaction in the period covered by both the search are identical.
(6) The said practice of appellant for carrying client business in pro account is accepted by the department in the block assessment but in the assessment completed u/s 153AI 143(3) the same is disregarded without giving any reason in the body of assessment order.
(7) During the course of assessment proceedings the Ld. A.O. vide letter dated 18.11.2010 shown his 90
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intention to make addition on account of profit earned by client whose transaction were carried in pro account. Thus the assessee made a reference u/s 144A to the additional Commissioner of Income Tax ( Refer Page 248 to 250 of the compilation volume I) (8) During the course of discussion on application u/s 144A the Ld. Additional CIT suggested to file following documents evidences in respect of profit I loss of the clients whose business were carried in pro account :-
(i) Full name, Address and PAN of the clients.
(ii) Date wise confirmed copy of accounts.
(iii) Profit and Loss account and Balance Sheet of clients.
(iv) Computation of Income and Acknowledgement for filing of Income Tax Return by the clients.
(8) The appellant on next hearing on application u/s 144A vide its letter dated December 14, 2010 ( Refer page 251 of 91
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compilation Volume I ) after discussion with clients submitted that the appellant is ready to file details regarding full name, address and PAN of the clients and so also the date wise confirmed copy of the clients dully signed and specify their full name. Address and PAN. As regards the Profit and Loss a/c Balance Sheet, Computation of Income and Acknowledgement for filing of Income Tax Return by the clients it was submitted that the clients are not ready to provide the same, thus you are requested to call the same by inherent power given to the Department u/s 133(6) or 131 of the Income Tax Act.
(9) However, as the Ld. Additional CIT and Ld. A.O. were banked upon to make huge Addition and complete the high pitch assessment they had not used inherent power given to them u/s 131 or 133(6) of the Income Tax Act, to collect the copy of Profit and Loss 92
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A/c. Balance Sheet, Computation of Income and Acknowledgement for tiling of Income Tax Return from the clients.
(10) During the course of assessment proceedings the assessee filed ample evidences to prove that the Profit I Loss of the clients whose transaction were carried in pro account is genuine by filing year wise list of clients containing their full name, Address, PAN. Date-

wise copies of accounts of the clients duly specifying details regarding settlement dated name of the Drawee/Drawer Bank through which transaction is completed and instrument number and in Xerox copies of the Bank Statement in which the respective transaction is duly highlighted and confirmed copies of accounts of about 40% to 50% of the clients duly signed and specifying their full name, Address and PAN. and requested to the Ld. A.O. to allow time to file the confirmed copies of accounts of 93

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remaining clients but as the assessment was going to be barred by limitation, thus this request of the assessee was refused by the Ld. A.O. and completed the assessment by making the Addition on account of profit earned by clients whose business was carried in pro account by ignoring the loss suffered by clients whose business was carried in pro account without giving any reason in the body of assessment order.
(11) The year wise details of profit/ loss of clients are as under:-
A.Y. Profit of Pro Loss of Pro- Net Profit/Loss Cumulative Page No. of Client client effect compilation 01 02 03 04 (2-3) 5 6 279A to 279C & (-)5,98,60,545 2003-04 7,20,04,485 13,18,65,030 -5,98,60,545 279D, Volume 2 2004-05 3,43,93,845 5,331,96,980 (-)1,88,03,135 -7,86,63,680 279E to 279G & 279H, Volume 2 2005-06 3,67,92,350 3,83,88,851 (-)15,96,501 -8,02,60,181 279I & 279J Volume 2 and 3076 of volume
- 12 2006-07 1,12,26,806 4,17,350 (+)1,08,09,456 -6,94,50,725 279K & 279L Vol. 2 & 3030 of Vol. 12 2007-08 3,33,90,650 5,09,52,695 (-)1,75,62,045 -8,70,12,770 279M to 279 N of Vol. 2 & 3030 of Vo. 12.
2008-09 12,30,43,116 10,05,77,827 (+)2,24,65,289- 6,45,47,481 279O TO 279P & 279T of Vol.2 2009-10 1,92,75,578 35,64,833 (+)1,57,10,745 -488,36,736 279R to 2179T & 279T of Volume 2 (12) Aggrieved by the order of the Ld. A.O. the assessee 94
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preferred appeals for all the assessment years before the CIT (A) who deleted the additions made on this account by the Ld. A.O. ( 13) Dissatisfied by the order of the Ld. CIT (A) the department filed present appeals. Now our humble submission before your Honour's are as under:-
(i) We rely on the order of the Ld. CIT (A) as same is judicial and after appreciating the facts of the case and evidences filed before him.
(ii) Without prejudice to the above it is further submitted that if the contention of the department is accepted that the profit from the transaction of clients carried in pro account is belongs to the assessee by referring to the by laws and regulations of the NBOT in that case the loss from the transaction of clients carried in pro account be also treated as belongs to the appellant by relying on same regulation, as both the two folds of the same coin should be considered together. In the present case the Ld. A.O. has considered only one fold of the coin for his own convenience to make 95
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substantial additions which is illegal, arbitrary and against the basic principles of law.
(14) The Ld A.O. on the one hand accepted the profit earned of client whose business is carried in own account as the profit of the company by referring to the regulation of N BOT we could not understand that why he ignored the loss? Here it is important to mention that the assessing office has gathered the figure of profit and loss directly from the NBOT and there is no doubt in the figures of loss as reproduced herein above. As we understand it is basic principle of natural justice that both the two folds of same coin considered together. But in the present case what happened that department has considered only one fold of the coin and ignore the other fold for his own convenience which is patently wrong and illegal, ( 15) It is basic principal of the accountancy that figure of both the side i.e. the debit and credit side to be taken together.

The law does not permit the assessing officer if in the course of search or survey any document relating to sales is found in that case he cannot made the addition of 96

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sales, He can only made the addition of gross profit. (16) That the Ld.A.O. had made the addition of profit of client in our income without making any enquiry or without proving that the client is bogus or profit is transfer with the object to reduce the income. The said act of the Ld. A.O. is without any basis illegal on conjecture & surmises and against the basic principal of Income Tax Act . It is trite law that should no presumption of bad faith against an assessee unless there be sufficient material on record to establish and sustain that faith. Vide Lalchand Bhagat Ambica Ram Vs. CIT (1959) 37 ITR 288 (SC).Hirabai D.Desai & Sons vs. CIT (1936) 4 ITR 95 (BOM) . Sivan Pillai Vs. CIT (1958) 34 ITR 328 (MAO).

( 17) When the Ld.A.O. assessed the profit of client of whom transaction is carried in assessee's own account then why the amount of brokerage has not been subtracted from the addition of profit made by him It is second law that making an assessment u/s 143(3), the Ld A.O. is not entitled to make a pure guesses and make an assessment without any evidence or any material at all there must be 97

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something more than bare suspicion to support the assessment u/s 143 (3). In other words, the assessment of any particular year must be based not on mere suspicion or bare guess, but on legitimate material from which a reasonable inference of income having been earned during the accounting year could be drawn and that the initial burden of finding such material, however slight, is on the income-tax authorities and not on the assessee, Dhankeshwari Cotton Mills Ltd Vs CIT (1954) 26 ITR 775,782 (SC). United Patel Construction Co. Vs. CIT (1966) 54 ITR 424,426 (M.P.). Banshidhar Onkarmall vs. CIT (1953) 23 ITR 353,361 (Orissa). It is certainly not a 'leap in the dark'. The Assessing Officer is not entitled to make a guess without evidence, CIT vs. Kameshwar Singh, (1933) ITR 94. 106 (PC), Seth Nathuram Munnalal Vs. CIT (1954) 25 ITR 216.220 (Nag).

( 18) By ignoring the loss suffered by clients in own account the Ld. A.O. violated the maxim qui aliquid statuerit parte inaudita altera aequum licet dixerit, haud aequutn fecerit, which means: he who determines any matter without 98

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hearing baths ides, though he may have decided right, has not done justice. In other words, as it is now expressed 'justice should not only be done but should manifestly be seen to be done' .Anil Kumar Sheel Vs Principal, MAOam Mohan Malviya 143 (3) on 28.12.2007 and in the said assessment also the said practice of assessee is accepted by the department. (22) Though the principal of res judicata is not applicable in the income tax matter. But findings of earlier years on the same matter are relevant. Where all fundamental facts permeating through different assessment years have been found as a fact one way or the other and parties have allowed that position to be sustained by not challenging the order, it would not be at all appropriate to allow the position to be changed in a subsequent year - Radhasoami Satsang Vs CIT (1992) 193 ITR 321 (SC), City Montesori School (Regd.) Vs. Union of India and others (2009) 315 ITR 48 (ALL).
(23) The basic reason for doing business of clients in Pro Account is that as per the regulation of N.B.O.T., the client 99
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should have Bank Account in the State Bank of Indore. N.B.O.T. Extension Counter, Phadnis Colony Branch, Indore and all the margins & Mark to market amount payable & receivable have to be debited or credited in this Bank Account only & the said bank was not having e- transactions facility up to Financial Year 2006-07 and after that the facility was very poor. Thus the client was not interested to block funds.
(24) For the above reasons not only us but all the other members was also following the same system of doing client's business in Pro Account and same was in knowledge of the NBOT. There was not a single occasion where the NBOT objected this practice of doing client business in Pro Account either to us are in case of any other member.
(25) Moreover, there was a periodical Audit/Inspection of our Books of Accounts carried by for Nard market commission (FMC), Regulating body of Commodity Exchanges. The said audit I inspection being carried by independent Auditor/Inspector appointed by the regulators. The said 100
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fact was also in their knowledge & they have never objected this practice. In support of this contention we are enclosing here with copy of report for illustration which is forwarded to us by the NBOT.
(26) That during the Course of Assessment proceedings it was explained before the Ld. A.O. that all the parties are genuine, identifiable, Income Tax payer and all the transactions of receipts and payments were entered into through Account payee cheques without any exceptions. (27) That during the course of assessment proceedings the Ld.A.O. insisted assessee to produce the ledger account of future trading of all the clients alongwith copy of their Income Tax Return, Profit & Loss A/c .Balance Sheet etc. It was explained to the Ld. A.O. that after contracting the clients it is found that majority of clients are not interested in supplying their Income Tax Record .Thus the company has provided the confirmation letter of all the clients dully signed and specifying their full name ,address and PAN and requested to the Ld. A.O./Ld. Addl. Commissioner by Letter dt. 28th October, 2010, 09th December, 2010, and 101
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14th December, 2010 that if he has any doubt in his mind regarding the genuineness of parties or transactions, he shall directly issues summon u/s 131 to these parties or collect information u/s 133(6), but as the A.O. was prejudice and bank upon to complete the high pitch assessment to create a substantial demand against the assessee, he hAO not issue any summon or notice to any of our clients.
(28) That the Ld. A.O. has not pointed out any defect in the regular and day to day books of accounts which is audited by the independent chartered accountant and so also inspected/audited by the person appointed under the Forward Market Contract ( Regulation) Act. 1952 and none of the authority have pointed out any mistake. (29) The (CBDT) has issued notification ( No. SO 69) (E) dated 25-01-1996-(1996) 218 ITR St.(1) u/s 145(2) as to the Accounting Standards to be followed by all assessee following mercantile system of accounting. The A.O. should point out what is material variation in the accounts of the assessee with respect to the said notification. It 102
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may be repeated that the A.O. has no function to enforce provisions of the Forward Contract Act. The assessee has no duty under the Forward Contract Act to get the accounts audited. The FMC if and when needs may get the account of the assessee audited. As a matter of fact that Accounts of the assessee were got audited on 15/06/2006 and 26/05/2008 and no action taken minor lapses here and there is human error and incidence of such business.
(30) Ld. A.O. has not found any non-member unregistered client is bogus, or that the transaction entered into with him is imaginary or false. Some test check could have been applied instead of arbitrarily adding the income of client in the income of assessee for which there is no provision in Income Tax Law or in any other Law .The Ld A.O. had not pointed out as to which income of client is income of the assessee and for what reason particularly when the assessee has provided full name, Address, PAN of each and every client and requested to the Ld. A.O. that if he has any doubt regarding the genuineness of 103
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transaction or client he may directly call information u/s 133(6) or by issuing summon u/s 131 .But the Ld. A.O. failed to utilize inherent power given to him under the Income Tax Act because he was bank upon to make huge additions to create a substantial demand against assessee.
In view of the above facts it is prayed that Departmental appeal on this ground be dismissed."
4. It was further argued by the ld. Authorized Representative that the issue in question is squarely covered by the jdecision of the Tribunal in the case of Nandlal Manglani in I.T(SS).A.Nos. 94 to 100/Ind/2012.
5. On the other hand, the ld. CIT DR relied on the order of the Assessing Officer. With respect to the issue being covered by the order of I.T.A.T., the ld. CIT DR fairly conceded that facts in the instant case are pari materia and addition was made with reference to the similar profit transferred by assessee to its clients.
6. Rival contentions have been considered and records 104
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perused. From the record, we found that search and seizure operation was carried out at business premises of assessee on 2.5.2008. The assessee was found to be trading in future transactions. In respect of the profit earned by the clients and which was transferred by the assessee to the clients account, the Assessing Officer added entire amount of profit in assessee's income. As per querry of Assessing Officer, the assessee filed confirmation from some of its clients alongwith their income tax particulars. However, the Assessing Officer was not satisfied. We found that alongwith the profit, there was losses incurred by the clients with respect to the similar transaction. However, the Assessing Officer has ignored the losses incurred by the clients and only considered profit earned by them and which was transferred to their account. There is no justification in Assessing Officer's action for ignoring the loss in similar transaction while considering only profit earned in the very same transaction. If we take profit earned by the clients as well as losses suffered by the clients, which was transferred by the assessee to the respective clients account, the cumulative result of all the years under 105
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consideration reflect excess of loss incurred by the clients in each year, thus, does not warrant any addition to assessee's income. The ld. CIT(A) has given the table indicating profit earned by the clients as well as loss suffered by the clients. The cumulative result of the profit/loss of the client from 2003-04 to 2009-10 indicate figure of loss of Rs. 4,88,36,736/- even in each assessment year, the cumulative result is loss, thus, we do not find any merit in the addition so made by the Assessing Officer by taking figure of profit only and ignoring the figure of loss, which is not in dispute as per the findings recorded by the lower authorities.
7. With respect to transfer of profit by assessee, similar issue has been considered by the Tribunal in detail in the case of Nandlal Manglani in I.T(SS).A.Nos. Nos. 94 to 100/Ind/2012, wherein following observations have been made by this Bench :-
" 2.5 If the totality of facts available on record, observations made in the assessment orders, conclusion drawn in the impugned orders 106
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and the assertion made by the ld. representative from both sides is kept in juxtaposition and analysed, we find that the impugned additions were made by the ld. Assessing Officer merely on the plea that the assessee could not furnish the income-tax returns and balance-sheets of the clients from whom the assessee effected transactions through NBOT. Now the question arises if the clients had not shown the income in their returns, whether the assessee can be penalised or who is to be penalised ? The obvious reply is the assessee cannot be penalised for the fault, if any, committed by the clients. Uncontrovertedly, the assessee furnished the copies of bank statements in support of its claim, evidencing that the funds, on account of settlement of various transactions (saudas) for and on behalf of the clients, were transferred 107
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through banking channels. In view of these facts, it can be said that the Assessing Officer has cast a heavy burden on the assessee to demonstrate that the income received by such clients was reflected by them in their respective returns. In the assessment orders, no instance has been quoted by the Assessing Officer to pin-point any fault in the claim of the assessee, more specifically when the assessee furnished the list of clients along with addresses during assessment proceedings along with confirmations from most of the clients but the transactions were duly appearing in the books of accounts of the assessee of all the clients. In its own wisdom, the Assessing Officer ignored the documents but harpened on the single point that income-tax returns of the remaining clients were not furnished. The bank statements along with 108
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confirmations and transations through banking channels clearly indicate that there was no mala fide on behalf of the assessee and onus has duly been discharged. Furthermore, before the ld. CIT(A), the remaining income-tax returns and confirmations from the clients were furnished as additional evidence, which has been admitted by the ld. CIT(A). The ld. CIT(A) tabulated the information as has been mentioned in preceding paras of this order. The record clearly shows that whatever evidence has been filed by the assessee during assessments as well as first appellate stage establishes that the assessee has done speculative business for and on behalf of the clients also and for himself. There is uncontroverted finding in the impugned order that the Assessing Officer was inconsiderate to the extent that during assessment proceedings, 109
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addition made in respect of profit passed on to the clients was not considered in proper perspective and some of the clients also suffered losses which has increased the income of the assessee. The finding recorded in the impugned order in para 4.6 has not been controverted by the Revenue. It is further noted that while concluding the issue in para 4.7, there is a clear direction that in case it is found by the Assessing Officer that any of the clients has not shown corresponding income in the respective return then the ld. Assessing Officer would be free to proceed against such clients by taking remedial action in accordance with law, therefore, the Revenue should not feel aggrieved. The assessee cannot be put to unnecessary hardship to prove which is not expected from him as onus has been clearly discharged. So far as the contention of the ld. CIT 110
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DR that sufficient opportunity was not provided to the Assessing Officer, we find that the assessment order was framed on 29.12.2010 and on filing the first appeal before the ld. CIT(A), the assessee furnished the statement of total profits earned on behalf of clients [with complete details, pages 4 to 7 of the paper book before ld. CIT(A)], statement of losses incurred on behalf of clients [with complete details - page 8 of the paper book], letter dated 22.12.2010 [before Assessing Officer] enclosing confirmations of transactions [pages 9 to 58], letter dated 26.11.2010 [filed before the Assessing Officer], copy of personal balance sheets etc. Ledger of accounts of all clients [pages 2 to 47 of the paper book filed before the ld.

CIT(A)] and more importantly, confirmations/ITRs of the clients [pages 49 to 135 before ld. CIT(A)] and all these documents were duly examined by 111

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the ld. first appellate authority. These documents were duly sent to the Assessing Officer by the ld. CIT(A) vide communication dated 9.12.2011 for comments and remand report but the same were not commented upon as is evident from communication dated 16.1.2012 (as brought to our notice by the ld. CIT/DR), addressed to ld. CIT(A) and finally, the impugned order was passed on 31.1.2012, meaning thereby, from 9.12.2011 to 31.1.2012, the Assessing Officer could not respond to the ld. CIT(A), therefore, the contention of the Revenue that sufficient opportunity was not granted to the Assessing Officer is without any basis. The ld. CIT(A) was not expected to wait for indefinite period. So far as the decision in New Kailash Cotton Factory vs. ITO (supra) relied upon by the Revenue is concerned, we find that the facts are altogether 112
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different as there was no proof available with the assessee or any agreement between the parties for purchase and sale of commodities, therefore, this judicial decision may not help the Revenue. So far as the contention of the ld. CIT DR that the Assessing Officer was not afforded sufficient opportunity, the ld. CIT(A) has already directed the Assessing Officer that the concerned Assessing Officer would be free to proceed against those clients and resort to remedial action in cases where limitation period has not expired yet. In view of these facts, we find no reason to interfere with the conclusion drawn in the impugned orders. These are affirmed. "
8. In view of the above, respectfully following the decision of Coordinate Bench, the appeals filed by the Revenue in all the years under consideration starting from assessment years 2003-04 to 2009-10 is hereby dismissed. 113

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9. Even with respect to the legal ground raised by the assessee with regard to additions having been made without referring to the seized material, where assessments were not abated, similar issue is considered by the Tribunal in the case of Arun Sehlot in I.T(SS).A.Nos. 186 to 192/Ind/2012, order dated 30th April, 2013, wherein following was the observations :-
"Page 61 para 28 "We have considered the rival submission and found from record that assessment for assessment year 2003-04 and 2004-05 was completed u/s 143(3) . In respect of assessment year 2005-06, for which the return was filed on 31.3.2006. the same was processed u/s 143(3), the due date of notice u/s 143 (2) was expired on 31.03.2007. Similarly for assessment year 2006-07, the return was filed on 24.01.2007. The same was processed u/s 143(1) and the time limit for issuance of notice u/s 143(2) expired on 31.01.2008. In this case, search was conducted on 30.05.2008. Thus, for the assessment 114
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year 2003-04 to 2006-07, it can be said that no assessments were pending, applying the proposition of law discussed hereinabove. However, with respect to no incriminating material found during course of search, the observation of the Assessing Officer was as under;-
.. It was found during the course of assessment proceedings the assessee has received loans and advances of various amounts from three Private Limited Companies either in his individual capacity or as proprietor of his firms Raj Industries and Arun Sahlot & Associates. Further it was noticed that Raj Homes Private Limited (RHPL) has been giving loans to various companies. It was found that the assessee ,vas substantially interested both in the affairs of RHPL and these other companies which were the recipient of such loans. Further it was noticed that these loans were not for business purposes as the assessee, his firms and the companies in which he was substantially interested 115
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were also having business dealings with RHPL and were also outstanding in the column of sundry debtors. Hence, it was clearly seen that these loans were just transfer of funds. "

29. It is clear from the finding recorded by the Assessing Officer in his assessment order Famed u/s 153A that the fact regarding assessee having received loans and advances from three companies, was found only during the course of assessment proceedings. Nowhere the Assessing Officer has referred any incriminating material found during the course of search so as to indicate that advance was given to the assessee in contravention of provisions of section 2(22)(e) . However, we found that CIT(A) while dealing with this issue have noted that " the information that the assessee has not paid tax on deemed dividend taxable u/s 2(22)(e) came to the knowledge of the authorized officer during the course of search ".

30. It is clear from the above that contradictory 116

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finding has been recorded by the CIT(A) with respect to information that assessee has not paid tax on deemed dividend taxable u/s 2(22) (e) came to the knowledge of authorized office during the course of search. However, the CIT(A) has not referred to any incriminating material indicating contravention of provisions of Section 2(22){e) as found during the course of search. Even during the course of hearing before us, the Ld. CIT DR did not refer to any incriminating material found during the course of search to substantiate the observation of CIT(A) . On the other hand, the Ld. Authorized Representative has vehemently argued that as per the finding recorded by the Assessing Officer in the assessment order u/s 153A, the fact that advances having not been made for business purposes by the alleged company to the assessee came to the notice of Department only during the assessment and not during course of search.

31. In view of the above contradiction in the findings 117

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recorded by the Assessing Officer and CIT(A), the Additions made u/s 2(22)(e) in the assessment years 2003-0~ to 2006-07 are restored back to the file of Assessing Officer for deciding afresh this legal issue after giving clear finding with regard to incriminating documents, if any, found during the course of search indicating contravention of provision of Section 2(22)(e) of the Act. The Assessing Officer is directed to decide the legal issue taking into considering the decision of Special Bench and the decision in the case of Gurinder Singh Baba (supra) as discussed above. We direct accordingly."
10. In view of the above discussion, the legal issue with regard to framing of assessment u/s 153A, where no incriminating document was found during search is also restored to the file of Assessing Officer for deciding afresh in terms of our above observation, after giving due opportunity to the assessee.
118

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11. The assessee is also aggrieved for addition of share capital made in the assessment year 2004-05 and 2005-06.
12. With respect to addition made u/s 153A/143(3), the contention of assessee was as under :-
"01. That the assessee filed original return of income for the above assessment years 2003-04 to 2007-08 within statutory time limit the details of the same are as under:-
S.No. A.Y. Due date Date of Date upto Whether Compilation for filing of filing of which notice u/s page no.
                   return of       return       notice u/s    143(2) was
                   income                       143(2) to     issued
                                                be issued v
                                                c
01      2003-      30.11.2003      03.11.2004   30.11.2004    No            -
        04
02      2004-      31.10.2004      -            31.10.2005    No any
        05                                                    notice u/s
                                                              143(2) was
                                                              issued
03      2005-      31.10.2005      29.10.2005   31.10.2006    Yes, notice   Page No.
        06                                                    u/s 143(2)    3251 &
                                                              issued on     3252
                                                              16.10.2006    Volume 12.
                                                              and
                                                              assessment
                                                              was
                                                              completed
                                                              u/s 143(3)
                                                              on
                                                              28.12.20097


                                                                                   119
                                        -: 120: -

04.           2006-   30.11.2006   28.11.2006    30.11.2007   No        -
              07
05.           2007-   31.10.2007   31.10.2007    31.10.2008   No        -
              08
06.           2008-   30.09.2008   26.05.2010    30.09.2009   No        -
              09


2. From the above it is clear that as no incriminating document was found during the course of search related to the assessment years 2003-04 to 2007-08 , thus the question of abatement of assessment of these years does not arises particularly when the assessment for the assessment year 2005-06 was completed u/s 143(3) prior to search.
3. From the above facts two issues arises in these appeals which are as under :-
(i) During the search operations no incriminating document was found and seized, which could indicate any undisclosed income.
(ii) The only addition made by the A.O. was on account of claim of profit pertaining to client in Pro Account for all the years under appeal and Share Capital for the A.Y. 2004-05 & 2005-06.
4. On these two issues the special bench of ITA T 111 the case 120
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of All Cargo Global Logistics Ltd Vs. DCIT reported in 137 ITO 287 (Mum-SB) and various benches of Tribunal and so also Delhi High Court in the case of Anil Kumar Bhatia after analyzing section 153A and so also CBDT Circular held that no addition could be made in assessment u/s 153A I 143 (3) when no incriminating document was found and seized during the course of search , which could indicate any undisclosed income in the completed assessment which are not abate. The same will be clear from the followings:-
(i) Section 153A as introduced in the statute w.e.f 01.06.2005, wherein the section starts with the non obstante phrase "Notwithstanding ... ". therefore, as soon as the search is concluded. the AO having jurisdiction over the assessee, a jurisdiction is cast upon the AO to issue notices under section 153A( 1) for the preceding six years, calling upon that person to file its returns. As soon as the notices are issued, due process of law shall begin and AO and the assessee are required to follow the same, which shall 121
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culminate with the AO to assess or reassess the total income of the searched person in all the six years in question.
While casting this jurisdiction over the AU the legislature, to remove all the difficulties with regard to the multiplicity of proceedings pending on the date of initiation of search, through 2nd Proviso, expunged all those proceedings, so that the assessee and the AO shall, as per clause (ii), assess or reassess the total income of the searched person. This barrier has been set up by the legislature only with regard to proceedings that were found pending before the AO on the date of search. Therefore, a proceeding which is pending, only those proceedings shall get abated. In other words, any proceeding that has reached its finality shall not be disturbed, as per the clarification issued by the CBDT, through Circular no. 7, dated 05.09.2003 (supra), unless there are materials found, indicating existence of income embedded in those incriminating document
(s).

(ii ) By making above analysis on the above facts the Hon'ble Special Bench in All Cargo Global Logistics held 122

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as under:-
Facts of the case narrated in para 5 which reads as under:- " 5. The appeals involved assessment year 2004-05 to 2009-
10. The facts are summarized here. In the previous years relevant to assessment year 2004-05 to 2008-09, the assessee had been operating the CFS at Jawahar Lal Nehru Port Trust.

Such CFS was also operated at Chennai in the previous year relevant to assessment year 2009-10. The facts for assessment year 2004-05 was completed on 30th December 2006, under section 143(3) of the Act. The return for assessment year 2005- 06 was processed on 21st September, 2006 under section 143(1) Return assessment year 2006-07 was also processed on 27th November, 2007, under section 143(1). Thus no proceeding was pending for these years on 10th July, 2009, when search was conducted under section 132(1). In the original proceedings for assessment year 2004-05, the claim of the assessee under section 80-IA(4) was scrutinized by issuing a questionnaire dated 25th May, 2006, Information and clarification were sought and vide point No. 20(a), the assessee was required to furnish a note on the unit with reference to its 123

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commissioning and capital work-in-progress shown in the balance sheet. This point was specifically responded to in letter dated 6th August, 2006, in which it was submitted that the CFS activity commenced from 7th April, 2003. A notification had been received from the Commissioner of Customs (Import), Jawahar Customs House bearing No.3 of 2003 dated 281h Feb, 2003, classifying the area 3,282 square mtrs. as "customs area" for the purpose of storage, stuffing/destuffing and clearance of export/import cargo. Subsequently the Commissioner has notified the same area as "Customs area" for export cargo and the assessee has been certified as a custodian for cargo under Customs Act, 1962, Copies of relevant notifications were also enclosed. On the above facts the Hon'ble Special Bench in para 58 held as under :-
"58. Thus question No.1 before us is answered a) as under:
(a) In assessments that are abated, the A.O. retains the original jurisdiction as well as jurisdiction conferred on him under section 153A for which assessments shall be made for each of the six assessment years separately: 124
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(b) In other cases, in addition to the income that has already been assessed, the assessment under section 153A will be made on the basis of incriminating material, which in the context of relevant provisions means.
(i) books of account, other documents, found in the course of search but not produced in the course of original assessment, and (i) undisclosed income or property discovered in the course of search.
(iii) Therefore what emerges is that no doubt 153A shall be initiated and all the six years shall become subject matter of assessment under section 153A. The AO shall get the Fee hand though abatement, only on the proceedings that are / is pending. It is, in these abated proceedings, AO can frame the assessments afresh. But in a case or in a circumstances where the proceedings have reached finality, assessment under section 153A read with 143(3) has to be made as was originally made assessed and in case where certain incriminating documents have been found indicating undisclosed income, then the addition shall only be restricted to those documents/incriminating 125
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material, and clubbed only to the assessment framed originally, as the law does not permit the AO to disturb already concluded issues. Whether it pertained to any other income or expenditure or deductions as also observed by the Hon'ble Delhi High Court in the case of Anil Kumar Bhatia.
"18. A perusal of Section 153A slwws that it starts with a non obstante clause relating to normal assessment, procedure which is covered by Sections 139, 147, 248,249, 151 and 153 in respect of searches made after 31.5.2003. These Sections, the applicability of which has been excluded, relate to returns, assessment and reassessment provisions. Prior to the introduction of these three Sections, there was Chapter XIV-B of the Act, which took care of the assessment to be made in cases of search & seizure. Such an assessment was popularly known as 'block assessment' because the Chapter provided for a single assessment be made in respect of a period of a block of ten assessment years prior to the assessment year in which the search was made in addition to these 126
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ten assessment years, the broken period up to the date on which the search was conducted was also included in what was known as 'block period'. Though a single assessment order was to be passed, the undisclosed income was to be assessed in the different assessment yeas to which it related. But all this had to be made in a single assessment order. The block assessment so made was independent of and in addition to the normal assessment proceedings as clarified by the Explanation below Section 15BBA(2). After the introduction of the group of Sections namely, 153A to 153C, the single block assessment concept was given a go-by. Under the new Section 153A, in a case where search is initiated under section 132 or requisition of books of account, documents or assets is made under Section 132A after 31.5.2008, the Assessing Officer is obliged to issue notices calling upon the searched person to furnish returns for the six assessment years immediately preceding the assessment year relevant to the previous year in which the search was conducted or requisition was made. The other difference is 127
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that there is no broken period from the first day of April of the financial year in which the search took place or the requisition was made and ending with the date of search/requisition. Under Section 153A and the new scheme provided for the AO is required to exercise the normal assessment powers in respect of the previous year in which the search took place.
19. Under the provisions of Section 153A, as we have already noticed, the Assessing Officer is bound to issue notice to the assessee to furnish returns for each assessment year falling within the svc assessment years immediately preceding the assessment year relevant to the previous year in which the search or requisition was made. Another significant feature of this Section is that the Assessing Officer is empowered assess or reassess the "total income" of the aforesaid years. This is significant departure from the earlier block assessment scheme in which the block assessment roped in only the undisclosed income and the regular assessment proceedings were preserved, resulting in multzle assessments. Under section 153A, however, the Assessing Officer has been given the power 128
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to assessee or reassess the 'total income' of the six assessment years in question in separate assessment orders. This means that there can be only one assessment order in respect of each of the six assessment years in which both the disclosed and the undisclosed income would be brought to tax.
20. A question may arise as to how this is to be sought to be achieved where an assessment order had already been passed in respect of all or any of those six assessment years, either under Section 143(1)(a) or Section 143(3) of the Act. If such an order is already in existence, having obviously been passed prior to the initiation of the search/requisition, the Assessing Officer is empowered to reopen those proceedings and reassess the total income taking note of the undisclosed income, if any, unearthed during the search. For this purpose, the fetters imposed upon the Assessing Officer by the strict procedure to assume jurisdiction to reopen the assessment under Section 147 and 148, have been removed by the non obstante clause with which sub section (1) of Section 153A opens. The time-limit within which the notice under Section 148 can be issued, as provided in Section 149 has also been made inapplicable by the 129
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non obstante clause. Section 151 which requires sanction to be obtained by the Assessing Officer by issue of notice to reopen the assessment under Section 148 has also been excluded in a case covered by Section 153A. The time-limit prescribed for completion of an assessment or reassessment by Section 153 has also been done away with in a case covered by Section 153A with all the stop having been pulled out, the Assessing Officer under Section 153A has been entrusted with the duty of bringing to tax the total income of an assessee 'whose case is covered by Section 153A, by even making reassessments without any fetters, if need be.
21. Now there can be cases where at the time when the search is initiated or requisition is made, the assessment or reassessment proceedings relating to any assessment year falling within the period of the six assessment years mentioned above may be pending. In such a case. the second proviso to sub section (1) of Section 153A says that such proceedings shall abate ". The reason is not jar to seek Under Section 153A, there is no room for multiple assessment orders in respect of any of the six assessment years under 130
-: 131: -
consideration. That is because the Assessing Officer has to determine not merely the undisclosed income of the assessee, but also the total income of the assessee in whose case a search or requisition has been initiated, Obviously there cannot be several orders for the sane assessment year determining the total income of the assessee in order to ensure this state of affairs namely, that in respect the six assessment years preceding the assessment year relevant to the year in which the search took place there is only one determination of the total income, it has been provided in the second proviso of sub Sub-Section 153A that any proceedings for assessment or reassessment of the assessee which are pending on the date of initiation of the search or making requisition "shall abate ".

Once those proceedings abate, the decks are cleared, for the Assessing Officer to pass assessment orders for each of those six years determining the total income of the assessee which would include both the income declared in the returns, if any, furnished by the assessee as well as the undisclosed income, if an)', unearthed during the search or requisition. The position thus emerging is that where assessment or reassessment 131

-: 132: -

proceedings are pending completion 'when the search is initiated or requisition is made they will abate making way for the Assessing Officer to determine the total income of the assessee in which the undisclosed income would also be included but in cases where the assessment or reassessment proceedings have already been completed and assessment orders have been passed determining the assessee's total income and such orders are subsisting at the time when the search or the requisition is made, there is no question of any abatement since no proceedings are pending. In this latter situation, the Assessing Officer will reopen the assessments or reassessments already made (without having the need to fallow the strict provisions or complying 'with the strict conditions of Sections 147, 148 and 151) and determine the total income of the assessee. Such determination In the orders passed under Section IS3A would be similar to the orders passed in any reassessment, where the total income determined in the original assessment order and the income that escaped assessment are clubbed together and assessed as the total income"
132
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(iv) From the above it is dear that no distinction have been made by the Courts in assessment completed either u/s 143(1) or 143(3) which will be clear from the barer reading of para 16(a) of the Judgment which is reported in 147 TTJ relevant page is 529 the said para read as under:-
"In the case of LMJ International (supra), in para 13, it is mentioned that the total income of the assessee is to be recomputed on the basis of the undisclosed income unearthed during search and the same is to be added to regular income assessed under section 143(3) or computed under section 143(1) . In para No. 14, it is mentioned that the Department seeks to place interpretation on the provisions, which if accepted, would lead to serious hardship, inconvenience, injustice, absurdity and anomaly. Finally, it has been mentioned that the Board Circular No. 7 of 2003, dated 5111 September, 2003 (2003) 18-1 CTR (St) 33. Clearly indicates that the appeal, revision etc. arising out of earlier assessment shall not abate, which means that there is no merger of earlier assessments with the assessment mAOe under the new scheme ".
133

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(v) Further in para 55( d) & (g) to (i) the Hon:b1e Bench observed as under:
Para d "(d) In the case of Padmasundara Rao (Decd.) (Supra) a note of caution has been made that while interpreting a statute, casus omissus should not be readily inferred.

Instead all parts of a statute or section must be construed together with reference to the context and other clause so as to make it a consistent statute. We have read the provisions of section 132(1) and section 153A together, which are in the nature of cause and effect and therefore in our humble opinion we have rightly read them together, reading section 153A in isolation and as interpreted by the learned standing counsel would have the effect that in case of an assessment, which is not pending and where nothing is found, the same may be reopened. Such interpretation will produce a result that an assessment which has come to an end and for which there is no cause of reopening shall revive simply because a search has been conducted. According to us, this will not be harmonious interpretation of various provisions of section 134

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132 and 153A,
(g) In the case of C. B.Gautam (supra), the finding was that provisions contained in Chapter XX-C do not confer unfettered powers on the appropriate authorities for pre-emptive purchase of' a property, when it has been agreed to be sold by the assessee for a consideration significantly lower than the fair market value. We are of the view the provisions in section 153A also do not confer any arbitrary or unbridled power on the A. 0.

However, that is not the real issue. The real issue is whether there is any sanctity of completed assessment in respect of which nothing has been found in search. When we look to any other provisions regarding reopening of assessment, we find that there are certain preconditions to be satisfied for doing so. The precondition in this case is the initiation and conducting of the search. The avowed purposes of search have already been stated by us. In case decided under section 147 or 263, the scope of assessment is narrower than the scope of' original assessment. This is because matter which has been discussed and debated in assessment, which has become final, and for which there is no reason to agitate again in the reassessment, 135

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there is no reason to reopen them. This consideration would be applicable in the reassessment under section 153A and guidelines can be clearly discerned in the provision contained in section 132(1).
(h) In the case of Mahendra Saree Emporium (supra), it has been held that abatement kills the right to sue and has the effect of unceremoniously terminating pending legal proceedings without any regard to merits, such abatement takes place only in respect of a pending assessment. There is no word in the provision to the effect that even completed assessments abate. Therefore, sanctity of such assessment should be maintained except when something is found in search which goes.'" against such sanctity. We are of the view that the sanctity is violated not only on detection of undisclosed income or asset but also when books of account or other documents which should have been produced in original assessment as they were relevant to the assessment, have not been produced. But found in the course of search.
(i) 'The decision in the case of Ramballabh Gupta (supra) leads to the conclusion that recourse to section 1-17 cannot be 136
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taken for the years which are covered under section 153A. There is other finding regarding reassessment of 6 years also, which is incidental to the aforesaid finding. We may add that we have not held that the assessment can be made only for those years in respect of which books or assets etc, are found. We have come to the clear finding that assessment/ reassessment for all six veal's will have to be made. The real question is the scope of reassessment which is not pending, for which we have read provisions of section 132(1) and section 153A together. Thus the total income under reassessment may be the same as in the original assessment or may be higher than that, depending upon the materials which are uncovered in the course of search. We are also of the view that issue of notice for six years and computing reassessment for these years even if no material is found in the course of search for some years even no material is found in the course of search for some years does not amount to harassment etc. and even if it does so, the same has to be ignored in view of the clear statutory provision.
(ii) Following the above decision of Special Bench the various 137
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Benches of the Hon'ble' Tribunals have decided that where the time limit for issuance of notice u/s 143(2) was expired, in assessment u/s 153A / 153C the addition could be made only on the basis of incriminating documents found and seized during the course of search. Some of the decisions are as under:-
(a) Gurinder Singh Bawa Vs. Dy. CIT ITA Nos. 2075 & 2669 (Mum) of 2010 order dated November 16. 2012. In the instant case the Honb'le Bench of which the Hon'ble President of ITAT was also one of the Signatory held as under:-
Para 6 .. We have perused the records and considered the rival contentions carefully. The dispute raised is raised legal validity of addition made by AO under section 153A of the Act, under the provisions of section 153A, in all cases, where search is conducted under section 132 of the Act, AO is empowered to assess or reassess total income of six assessment years preceding the assessment year in which search was conducted. The section also provides that assessment or reassessment 138
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relating to any assessment year falling within period of six assessment years if pending on the date of initiation of search shall abate. There have been divergent views regarding scope of application of section 153A in cases where no incriminating material was found indicating any undisclosed income. Some of the Tribunal Benches had taken the view that in case no incriminating material 'was found AO had no jurisdiction to make assessment or reassessment under section 153A while some other Benches held that jurisdiction under section 153A 'was automatic to reassess six immediate preceding assessment years irrespective of the fact whether any incriminating material was found or not. Another aspect on which there had been divergent views was whether even AO had jurisdiction under section 153A , addition can be made in assessment / reassessment only when some incriminating material has been found. All these aspect had been referred to the Special Bench of the Tribunal in case of Allcargo Global Logistics Ltd Vs. Dy. CIT (2012) 137 ITD 287 and order of Special Bench dated 06.07.2012 has been referred. 6.1 The Special Bench in the case of All cargo Globed Logistics 139
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Ltd (Supra) has held that provisions of section 153A come into operation if a search or requisition is initiated after 31.05.2003 and no satisfaction of this condition, the AO is under obligation to issue notice to the person requiring him to furnish the return of income for six years immediately preceding the year of search . The Special Bench further held that in case assessment has abated, the AO retains the original jurisdiction as well as jurisdiction under section 153A for which assessment shall be made for each assessment year separately, Thus in case where assessment has abated the AO can make addition in the assessment, even if no incriminating material has been found. But in other cases the Special Bench held that the assessment under section 153A can be made on the basis of incriminating material which in the context of relevant provisions means books of account and other documents found in the course 0.( search but not produced in the course of original assessment and undisclosed income or property disclosed during the course of search. In the present case, the assessment had been completed under summary scheme under section 143 (1) and time limit for issue of notice under section 143(2) had expired on 140
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the date of search. Therefore, there was no assessment pending in this case and in such a case there was no question of abatement . Therefore, addition could be made only on the basis of incriminating material found during search. 6.2 In this case, the AO had made assessment on the information /material available in the return of income. The information regarding the gift was available in the return of income as capital account had been credited by the assessee by the amount of gift. Similar was the position in relation to addition under section 2(22)(e) . The AO had not referred to any incriminating material found during the search based on which addition had been made. Therefore following the decision of the Special Bench (Supra), we hold that the AO had no jurisdiction to make Addition under section 153A. The addition made therefore deleted on this legal ground. On merit also we do not find any case to sustain the addition. The addition made is on account of gift which is nothing but loan taken by the assessee which was converted into gift during the year. Thus source of gift was loan which the AO himself has admitted had been taken by the assessee in the year prior to 2000. Therefore, 141
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addition if any could have been made in the year of loan. Similarly, claim of the assessee and finding of CIT(A) that there was no accumulated pro/it has not been controverted before us. We agree with CIT(A) that current year profit has to be excluded. Therefore, there is no case for any addition under section 2(22)(e) . We, therefore, dismiss the appeal of the revenue and allow the appeal filed by the assessee.

7. In the result, appeal of the assessee is allowed and that by the revenue is dismissed ",

(b) In the case of ACIT Vs. Pratibha Industries Ltd ITA No. 2197 to 2199/MUM/2008 order dated 19.12.2012 the Hon'ble IT AT Mumbai Bench "C" Mumbai held as under- Para 50 .. We find there is complete disharmony in the circumstances, because, the Act allows six assessments years to be open vide section 153A for being assessed or reassessed to ascertain total income, therefore, the AO is bound to pass an order under section 153A read with 143(3) , which, according the Anil Kumar Bhatia (supra), "such determination , in the orders passed under section 153A would be similar to the orders 142

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passed in any reassessment, where the total income determined in the original assessment order and the income that escaped assessment are clubbed together and assessed as the total income ". Therefore , the A 0. Accordingly has to stop short in these proceedings and restrict himself to the income already determined /assessed in the already concluded proceedings for the year (s), whether under section 143(1) or 143(3). Thus it is a case of valid notice under section 153A, "with no undisclosed income to be clubbed with income originally assessed and finalized. However, it has to be Added here that proceedings under section 153A are linked to the search having been initiated on the person, not with the documents found and seized. The documents so found and seized, may become useful to the AO for making an assessment of total income under section 153A read with 143(3).
(c) In the case of Shree Yamuna Proteins Dahod Vs. AC1T CC-l. Baroda ITA No. 227 to 232/Ahd/2010 order dated 21.09.2012 the Hon.ble ITAT Ahmedabad Bench held as under:-
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Para 6 We have considered the rival submissions, perused the material on record and have gone through the orders of authorities below. We have already noted that the assessment for the assessment years 200102 to 200-1-05 have not abated because the assessment proceedings were not pending for these four years on the date of search i.e. 19.09.2006. But the assessment for the remaining two years i.e. assessment years 2005-06 and 2006-07 have abated. In our considered opinion, for the purpose of assessing the income for earlier four years i. e. assessment years 2001-02 to 2004-05, the assessee cannot be allowed to raise a new claim regarding depreciation claimed and allowed at a lesser amount in the return filed by it u/s 139(1) because in those cases, where the assessments have not abated, the only change which can be made in the assessment u/s 153A over and above the assessment already completed, is to be on the basis of the material found in the course of search. But in the case of those years where the assessments have been abated, the assessment has to be made including the original as well as reassessment on the basis of material found 144
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in the course of search. This view of us finds support from the decision of special Bench of the Tribunal rendered in the case of Airwide Express Cargo Vs.ITO in I. T.A. No. 721/Had/2008 order dated 21.10.2011.
(d) AClT Cent. Circle -40 Vs. SafYeast C. Pvt Ltd.. ITA No. 4230/Mum/2011 Para 6 We observe that AO has made Ad hoc disallowance while completing assessment u/s 1-/3(3) r.w.s.153A of the Act. which are not based on any of the seized material found during the course of search. We are of the considered view that while making he assessment pursuant to search taken place and that too in a case where original return had already been accepted u/s 1-13(1) of the Act before the search fwd taken place, Ad hoc disallowance made by AO is not justified. Similar question was also considered in the block assessment by Hon'ble Calcutta High Court in the case of Commissioner of Income Tax Vs. Ashim Krishna Mondal 270 ITR 160 (Cal), wherein, it was held that no addition can be made in the block assessment based on estimate. In view of above facts that the Ad hoc disallowance is 145
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not based on any material found during the course of search that the claim of the assessee is not genuine, we hold the order of Ld CIT(A) to delete the ad hoc disallowance made by AO does not call for any interference.
(e) ACIT Kolkata Vs. HIindustan Storage & Distribution Co.

Ltd." in IT (SS) A NO. 135/Ko1/20 11 order dated 04.08.2012 Para 3 In view of the above discussion and also bearing in mind the binding nature of Special Bench decision in the case of All Cargo Logistics Ltd. "Supra), we confirm the stand of the Commissioner (Appeals), wherein it has been held that where incriminating material found in the course of search proceedings relating to any assessment year, the completed assessment for such years cannot be disturbed. The stand so taken by the Commissioner is consistent with the stand taken by the Special Bench, Mumbai of this Tribunal. Which has been pointed alit earlier, is a binding judicial precedence for us. Accordingly , grievances of the Assessing Officer are rejected.

(f) Shri Shankar R.Jhunjhunwala Vs. ACIT Aurangabad, IT No. 225/PN/11 order dated 31.07.2012 146

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Para 8 Even viewed in the aforesaid context, we find that the claim of the assessee is untenable. In this case. as the Commissioner of Income Tax (Appeals) has observed. the income returned by the assessee under section139(1) of the Act has achieved finality. Even before us , the assessee has not asserted that on the date of search the assessment for the instant year was pending so as to abate. Therefore, in this case where income returned under section 139( 1) has become final, in terms of the decision if the Special Bench in the case of All Cargo Global Logistics Ltd (Supra) the assessment under section 153A is to be made only on the basis of "Incriminating material" which has been explained to mean (i) books of account , other documents, found in the course of search but not produced in the course of original assessment and (ii) undisclosed income or property discovered in the course of search , Therefore, in our view, for the aforesaid reason the claim of the assessee in question has been rightly negated bv the lower authorities.
(g) Hiren N Patel Vs. ACIT . Mumbai ITA No. 39/40/41/Mum/2010 order dated 12.10.2012 147
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Para 2.3 In the case, of the assessee no assessment under section 143(3) had been made for assessment year 2002-03 and time period for issue of notice under section 143(2) had expired on 31JJ3.2006 i.e. before date of search and time limit for issue of intimation had also expired on that date. Therefore, assessment in assessment year 2002-03 had attained finality and, there was no question of abatement of any proceedings. Therefore, in view of the decision of Special Bench (supra), in assessment year 2004-05, addition can be made only on the basis of incriminating material found in the course of search. In this case the disallowance of interest ).vas not based on seized material and therefore, AO had no jurisdiction to make in assessment under section 153(3) of the Act. The same view has been taken by the Tribunal in case of brother of the assessee Shri Atithi N.Patel in which on identical facts the Tribunal has deleted addition made by Assessing Officer no distinguishing features have been brought to our notice by the Ld. Departmental Representative. Therefore, following the said decision no addition can be made in case of assessee in assessment year 148
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200-/.-05. We, therefore, set aside the order of CIT(A) and delete the addition made by AO in assessment year 2004-05.
(h) Atithi N. PATEL vs. ACIT Cen.Cir -10 Mumbai ITA No. 43/Mum/2010 order dated 22.08.2012 Para 3 So far as the status of the return and assessment is concerned upto the date of search i.e. 04.10.2006 for the various assessment years. the same are given hereunder:-
A.Y. Date of Date of Date upto Remark Original intimation/as which notice Return filed sessment u/s 143 could be issued 2004-05 30.03.2005 31.03.2006 31.03.2006 No notice u/s 143(2) was issued, therefore, the assessment has attained finality before the date of search i.e. 04.10.06.
2005-06 17.04.2006 31.03.2008 30.04.2007 The time limit for issuance of notice u/s 143(2) has not been expired.
Therefore, the assessment was still open and in view of the provisions of Section 153A such assessment gets abated.
2006-07 31.03.2007 31.1.2008 31.01.2008 The time limit for issuance of notice u/s 143(2) has not been expired therefore the assessment was still open and in view of the provisions of Section 153A such assessment gets abated.
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Under section 153A the Assessing Officer is empowered to assessee or reassess the "total income for six assessment years. preceding to the year of assessment in which search has taken place. There can be only one assessment order in respect of six assessment years. If the assessment proceedings are pending completion. on the date of search is initiated, they will get abated and the Assessing Officer has to complete the assessment on the total income including disclosed and undisclosed income. If the assessment proceedings have already completed or attained finality. Then there is no question of any abatement since no proceedings are pending. Thus, so far as the assessment year 2004-05 is concerned, no assessment proceedings was pending and it had attained finality prior to the date of search and , therefore, such an assessment will not get abate in view of the provisions of section 153A.
(i ) recently the Hon'ble Indore Bench, Indore following the above decisions in the case of Arun Sehlot , Bhopal IT(SS) A.Nos. 186 to 192/Ind/2012 order dated 30.04.2013 held as under:- 150
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Page 61 para 28 "We have considered the rival submission and found from record that assessment for assessment year 2003-04 and 2004-05 was completed u/s 143(3) . In respect of assessment year 2005-06, for which the return was filed on 31.3.2006. the same was processed u/s 143(3), the due date of notice u/s 143 (2) was expired on 31.03.2007. Similarly for assessment year 2006-07, the return was filed on 24.01.2007. The same was processed u/s 143(1) and the time limit for issuance of notice u/s 143(2) expired on 31.01.2008. In this case, search was conducted on 30.05.2008. Thus, for the assessment year 2003-

04 to 2006-07, it can be said that no assessments were pending, applying the proposition of law discussed hereinabove. However, with respect to no incriminating material found during course of search, the observation of the Assessing Officer was as under;-

.. It was found during the course of assessment proceedings the assessee has received loans and advances of various amounts from three Private Limited Companies either in his individual capacity or as proprietor of his firms Raj Industries 151

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and Arun Sahlot & Associates. Further it was noticed that Raj Homes Private Limited (RHPL) has been giving loans to various companies. It was found that the assessee ,vas substantially interested both in the affairs of RHPL and these other companies which were the recipient of such loans. Further it was noticed that these loans were not for business purposes as the assessee, his firms and the companies in which he was substantially interested were also having business dealings with RHPL and were also outstanding in the column of sundry debtors. Hence, it was clearly seen that these loans were just transfer of funds. "
29. It is clear from the finding recorded by the Assessing Officer in his assessment order Famed u/s 153A that the fact regarding assessee having received loans and advances from three companies, was found only during the course of assessment proceedings. Nowhere the Assessing Officer has referred any incriminating material found during the course of search so as to indicate that advance was given to the assessee in contravention of provisions of section 2(22)(e) . However, we found that CIT(A) while dealing with this issue 152
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have noted that " the information that the assessee has not paid tax on deemed dividend taxable u/s 2(22)(e) came to the knowledge of the authorized officer during the course of search ".

30. It is clear from the above that contradictory finding has been recorded by the CIT(A) with respect to information that assessee has not paid tax on deemed dividend taxable u/s 2(22) (e) came to the knowledge of authorized office during the course of search. However, the CIT(A) has not referred to any incriminating material indicating contravention of provisions of Section 2(22){e) as found during the course of search. Even during the course of hearing before us, the Ld. CIT DR did not refer to any incriminating material found during the course of search to substantiate the observation of CIT(A) . On the other hand, the Ld. Authorized Representative has vehemently argued that as per the finding recorded by the Assessing Officer in the assessment order u/s 153A, the fact that advances having not been made for business purposes by the alleged company to the assessee came to the notice of Department only during the assessment and not during course of search. 153

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31. In view of the above contradiction in the findings recorded by the Assessing Officer and CIT(A), the Additions made u/s 2(22)(e) in the assessment years 2003-0~ to 2006-07 are restored back to the file of Assessing Officer for deciding afresh this legal issue after giving clear finding with regard to incriminating documents, if any, found during the course of search indicating contravention of provision of Section 2(22)(e) of the Act. The Assessing Officer is directed to decide the legal issue taking into considering the decision of Special Bench and the decision in the case of Gurinder Singh Baba (supra) as discussed above. We direct accordingly. In the instant case from the assessment order and the order of the Ld. CIT(A) itself it is clear that no incriminating document relating to the claim of profit of client in pro account and Share Capital was found and seized and the time limit for issuance of notice u/s 143(2) for the assessment years 2003-04 & 2006-07 was expired and for the assessment year 2005-06 was completed u/s 143(3). Thus the assessment for these years were finalized and as such no assessment was pending before the assessing officer for these years at the time of initiation of 154

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search consequent thereto additions made by the Ld.A.O. for these assessment years liable to deleted only on this score. Ground No.3 for the assessment year 2004-05 & Ground No.4 of the assessment year 2005-06 :
These grounds relates to the addition on account of Share Capital of Rs. 35.00,000/- and Rs. 10,00,000/- received during the A.Y.2004-05 & 2005-06 respectively. On the above ground our humble submission before your Honour's are as under:-
( I ) That during the assessment year in question appellant company received Share Capital only from One Company namely Agrawal Road Carriers Limited. To prove the genuineness of the said Share Capital assessee filed ample document before the Ld.A.O. and CIT(A) viz :-
(i) Copies of Share Application in the prescribed form duly signed giving complete postal address and Income Tax PAN of the applicant. Compilation Volume 12 Page 3162 to 3170 .
(ii) Copies of Board resolution duly signed passed by the Board 155
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of Directors of Agrawal Road Carriers Ltd. Compilation Volume 12 Page No. 3 171 to 3 I 79.
(iii) Copy of letters issued by the Share Applicant giving complete details of payment made on account of share application. Compilation Volume 12 Page No. 3180 to 3188.
(iv) Copy of Certificate of Incorporation is also submitted to the assessing officer during the assessment proceedings.

Compilation Volume 12 Page No. 3212.

(v) Copy of Memorandum of Association and Article of Association of the Applicant company. Compilation Volume 12 Page No. 3189 to 3211

(vi) Copy of Acknowledgment in respect of Income Tax return filed by Mis Agrawal RoAO Carrier Ltd for the Assessment year 2004-05 & 2005-06. Compilation Volume 12 Page No. 3214 & 3215.

(vii) Copy of Audited Balance Sheet of Mis Agrawal RoAO Carrier Ltd for the year ended 31.03.2004 & 31.03.2005. Compilation Volume 12 Page No. 3216 to 3254.

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(viii) Xerox copy or PAN Card. Compilation Volume 12 Page No.3213 (2) Thus in the present case appellant filed sufficient evidence to justify the identity of the share holder and genuineness of the transactions. That, for any reason the assessing officer is not satisfied with the source of amount invested by the share-holder in that case, necessary addition if any be made it should be in the case of the share-holder but in no case any addition be justified in the case of the assessee company.
(3) That we have proved the Identity and genuineness of the share holder regarding share capital received. The amount of share capital were received through account payee cheques and complete details as to justify the amount of share capital received were filed before the Ld.A.O. Once, assessee has prove the genuineness and identity of the share holder. In that case if the assessing officer has any doubt about the source of share capital in that case the assessing officer is free to take action against the persons who have contributed the same but in no case the same is 157
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to be added to the income of company.
(4) That the company discharged onus lying on it by proving the identity of the share holder. The amount of share application money could not be regarding as undisclosed income u/s 68. In the case of share capital the A.O. is entitled to inquire whether the alleged share holder do, in fact, exist or not. If the share holder exist, than possibly, no further enquiry need be made. But if the A.O. find that alleged share holders do not exist. then in affect. it would mean that there is no valid issuance of share capital.

Share cannot be issued in the name of non existing persons.

(5) It is submitted that the addition made by the assessing officer on account of unexplained share application money cannot be sustained for the following reasons:-

(i) The applicant company was identified.
(ii) The applicants confirmed the payment of money to the appellant for purchase of shares.
(iii) The transactions in question were by cheques.
(iv) That the subscribers company was duly incorporated 158
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with the Registrar of Companies.
(v) The shares have been allotted to the shareholders and letter of allotment have been submitted to the Registrar of Companies and so also in annual return of the company.

From the above it is clear that the assessee discharged the onus cast upon him and department has not made any effort to prove the contrary, thus it is prayed that addition made be deleted in view of the following decisions :-

(a) Lovely Export 319 ITR 5 (St)(SC)
(b) CIT vs. Jaydee Securities & Finance Ltd., 350 ITR 220 (All.)
(c) CIT Vs. Mishra Preservers (P) Ltd .. 350 ITR 222 (All.)
(d) CIT Vs. Gangeshwari Metal Pvr Ltd .. 84 CCH 37 (Del.)
(e) Kalyan Memorial & Charitable Trust Vs. ACIT 124 TTJ (Agra) ('I'M) 833
(f) CIT Vs. Orissa Corporation P.Ltd, 159 ITR 78 (SC)
(g) CIT Vs. Barjatiya Children Trust 225 ITR 340 (M.P.)
(h) CIT Vs. Mehrotra Brothers 270 ITR 157 (M.P.)
(i) CIT Vs. Metachem Industries 245 ITR 160 (M.P.)
(j) AravaIi Trading Co .. Vs. ITO (2008) 220 CTR (Raj.) 622 159
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(k ) Tolins Rubbers Vs. ACIT 270 ITR 280 (I) Rajshree Finsec Private Limited, Indore ITA No. 545/Ind/20 I order dated 6th February, 2012.

In view of above facts it is humbly prayed that the addition made on this account of Rs. 35,00,000/- and Rs. 10,00,000/- in the assessment year 2004-05 & 2005-06 respectively be deleted. "

13. We have considered the rival submissions and found from record that addition was made by the Assessing Officer on account of share capital issued by the assessee. In respect of share capital so received, the assessee has filed copies of share applicant duly signed by the applicant company, giving complete postal address and PAN Numbers of the applicants, copies of Board's Resolution duly signed by the share applicant company, details of payment made by the share applicants towards share application money, copy of certificate of incorporation of share applicant and its Memorandum of Articles and Association, copy of 160
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acknowledgement in respect of income tax returns filed by the share applicant company both for assessment years 2004-05 and 2005-06, copy of audited balance sheet of share applicant for the year ending on 31.3.2004 and 31.3.2005, copy of PAN Card. It appers that the Assessing Officer has not made detailed inquiry to find out the identity of share applicants and genuineness of transaction. It was argued by the ld. Authorized Representative that applicant company was duly identified and they have confirmed payment of money to the assessee for purchase of shares. The payments were made by the account payee cheuqes and the subscribers company was duly incorporated by Registrar of Companies. Shares have been allotted to the share holders and letters of allotment have been submitted to the Registrar of Companies and so also in the annual return of the company. As per ld. Authorized Representative, once the assessee is able to discharge the onus with regard to identity of the share applicant, in view of the decision of Hon'ble Supreme Court in the case of Lovely Exports, 319 ITR 5, no addition should be made in the hands of the assessee 161
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company, however, the Assessing Officer is at liberty to make addition in the hands of the share applicants if such shares applicants are not found with the sufficient funds for the investment in shares. It was also argued by the ld. Authorized Representative that no incriminating documents relating to share capital so received was found during search so as to make addition while framing assessment u/s 153A.
14. In view of the discussion made hereinabove, the legal issue for making addition on account of share capital u/s 153A without finding and referring the incriminating material found during search, is restored back to the file of Assessing Officer with similar didrection as contained hereinabove. As already stated, the Assessing Officer has not made proper inquiry and has reached to the conclusion without considering the documentary evidences filed by the assessee, the matter is restored to the file of Assessing Officer for making proper inquiry and deciding the issue afresh as per law.
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15. In the result, appeals are allowed in part for statistical purposes.

This order has been pronounced in the open court on 23rd August, 2013.

              Sd/-                              sd/-
       (JOGINDER SINGH)                 (R. C. SHARMA)
      JUDICIAL MEMBER                ACCOUNTANT MEMBER

Dated : 23rd August, 2013.

CPU*
1.5.8




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