TaxTMI 
TaxTMI 
2016 (1) TMI 1074
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.... record perused. Facts in brief are that the assessee was earlier holding membership card of Bombay Stock Exchange through its proprietor concern, M/s. S. Ramdas in 1998. The said membership cards was transferred to a company, namely, M/s. Tropical Securities & Investment Pvt. Ltd ("Tropical") in 1998 and Tropical thereafter took over and continued, the business of share broking and allied businesses. The assessee used to receive salary from Tropical. There were hardly any business remained in M/s. S. Ramdas. However, due to huge earlier loan liabilities and consequential heavy interest expenses, the said concern was running into huge losses. For the year under consideration, the assessee filed his Return of Income declaring loss of Rs. 1,4....
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....e page no. 208 of the document in file no. A - 1 seized from your office at Room No. 17, Bombay Mutual Chambers. Please explain the contents thereof Ans. This paper relates to the period prior to 6 - 7 years. This being very old matter, I have to go through the various documents and books of accounts in our office. The contents of this paper are such that a consolidated explanation is required to be furnished so that a proper meaning is derived therefrom. Hence it is not possible to furnish any plausible explanation explaining this paper and you are requested to allow us time to furnish explanation thereof" The A.O. issued notice under section 148 of the Act dated 13.03.2009. After reopening the AO made addition of Rs. 4,44,64,2....
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....hashank Patel and his associates had regular transactions with Tropical. In this regard, our attention was invited to the copy of accounts of Shashank Pate and his family members in the Books of Accounts of Tropical, which were filed before AO. These accounts were also confirmed by Mr. Shashank Patel and his family members The assessee, in course of the assessment, had also filed copy of individual client registration applications obtained by Tropical from Shashank PateI and his family members as required by SEBI. These forms were accompanied by the documents establishing identity of these persons and also their addresses. Ld. AR also pointed out that the balances due to these parties were also reflected in the Balance Sheet of Tropical, it....
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....had no transaction with Mr. Shashank Patel and his Family. He further clarified that 4 of the entries relating to cheques are reflected in the Books of Accounts of Tropical Investment & Securities Private Limited (Tropical). It was also brought to the notice of AO that Tropical was assessed by the same AO with PAN No.AAACT 1670 N. Again vide letter dated 24/10/2009 it was brought to the notice of the AO that 4 of the cheques entries are appearing in the regular books of accounts of Tropical. Further vide letter dated 4/11/2009, it was pointed out to the AO that the assessee had no transaction with Shashank Patel. In this letter the assessee had filed copy of accounts of Mr. Shashank Patel and his family members appearing in the books of acc....
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.... that the above details were filed vide letter dated 04/11/2009. Refer page 5 of the assessment order which reads as under:- "The assessee vide letter dated 4/11/2009 claimed that the transactions reflected in the said paper do not pertain to assessee's business. The assessee has no business transaction with Mr. Shashank Patel and his family members and that the said Shashank Pate and his family members have transactions with M/s. Tropical Securities and Investments Pvt Ltd. The assessee has also filed copy of account of the Shashank Patel and his family members with' Tropical Securities and Investments Pvt. Ltd. The Balance Sheet of the said assessee i.e. Tropical securities and Investment Pvt Ltd has been filed along with....