New Delhi, Sept. 5 -- The Income Tax Appellate Tribunal (ITAT), Mumbai, categorically ruled that tax authorities cannot treat fair and genuine futures and options (F&O) and commodity trading profits as bogus or simply accommodation entries merely on the basis of an investigative report.

Subsequently, the tribunal dismissed the Revenue's appeal in the case of a Mumbai resident, Rakhi Vipul Jogi, explaining the aspects in detail and upholding the cancellation of a reassessment in which her F&O and commodity trading profits were treated as unexplained income. Keeping these basics in mind, let us discuss the case and its core facts in detail.

Jogi had declared a total income of Rs.7.36 lakh for the Assessment Year 2012-13. Her return was in...