Pre-amendment reassessment limitation bars late notices under the preserved regime, invalidating consequential reassessment for affected earlier asses...
Cash-sales explanations for bank deposits require documentary reconciliation; reassessment notice survived where effective response time was available...
Functional comparability in transfer pricing prevents ad hoc arm's length adjustments where functions, assets, risks and reliable comparables are unes...
Alleged fraudulent transactions and non-genuine losses claimed by the assessee in currency option trades on the United Stock Exchange (USE). The key points are: The Assessing Officer (AO) relied on the 'Project Falcon' report pertaining to stock option trading on the Bombay Stock Exchange to allege that the assessee's losses from certain currency option trades on USE were non-genuine. However, the ITAT held that the 'Project Falcon' report had no connection with the assessee's trades on USE. The assessee had declared profits from several trades, and only a few transactions showing losses were questioned by the AO without any independent inquiry. The ITAT concluded that there was no material to establish that the specific loss-making transactions were non-genuine, especially when the assessee had declared huge profits from similar transactions. The AO also made additions u/s 69C for commission on non-genuine losses, based on a statement by Arun Shah in 'Project Falcon'. However, the ITAT held that the statement had no reference to the assessee's trades, and the assessee should have been given an opportunity to rebut or cross-examine. The adhoc commission rate applied by the AO and reduced by the CIT(A) was also unsupported by evidence. The ITAT deleted the additions made by the AO for.
Alleged fraudulent transactions and non-genuine losses claimed by the assessee in currency option trades on the United Stock Exchange (USE). The key points are: The Assessing Officer (AO) relied on the 'Project Falcon' report pertaining to stock option trading on the Bombay Stock Exchange to allege that the assessee's losses from certain currency option trades on USE were non-genuine. However, the ITAT held that the 'Project Falcon' report had no connection with the assessee's trades on USE. The assessee had declared profits from several trades, and only a few transactions showing losses were questioned by the AO without any independent inquiry. The ITAT concluded that there was no material to establish that the specific loss-making transactions were non-genuine, especially when the assessee had declared huge profits from similar transactions. The AO also made additions u/s 69C for commission on non-genuine losses, based on a statement by Arun Shah in 'Project Falcon'. However, the ITAT held that the statement had no reference to the assessee's trades, and the assessee should have been given an opportunity to rebut or cross-examine. The adhoc commission rate applied by the AO and reduced by the CIT(A) was also unsupported by evidence. The ITAT deleted the additions made by the AO for.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4918 
