2019 (2) TMI 898

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....1. 2. Briefly the facts of the case are that assessee filed return of income at Rs. 7,04,304/- from salary. The assessee apart from earning salary, is also engaged in share trading. The same has not been declared by assessee in his return. During the year and reference, assessee entered into the transactions valued as detailed herein "Type & Code of Transaction Transaction Valued STT-01 : Purchase of equity share in a recognized stock exchange Rs.70,90,097/- STT-02 : Sale of Equity share (settled by actual delivery of transfer) in a recognized stock exchange Rs.55,13,557/- STT-03 : Sale of Equity share (settled by otherwise than by the actual delivery of transfer) in a recognized stock exchange Rs.10,41,74,893/- ....

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....ct as has been published by ICAI, it is to be very clear that these note is not adopted or recognised by the department, thus, not having binding effect upon the department. However, the notice of the same is being taken and is applied to some extent. The A.O. noted that the term "gross receipts" for the purpose of turnover has not been defined in the Act. Normally, sales is an integral part of turnover. Sales in general mean purchase plus loss/profit. In the case of share trading, the assessee do the business just applying small amount against large scale purchases just applying margin money. In the present case, assessee made transactions of about Rs. 11.67 crores, against which, assessee has invested fresh capital in purchase Rs. 10 lacs....

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.... the transactions. Therefore, A.O. should not have applied Section 44AD of the Income Tax Act. 5. On the other hand, Ld. D.R. relied upon the orders of the authorities below. 6. We have considered the rival submissions. The assessee is a salaried employee. However, the assessee is also engaged in the share trading details of which are noted in the assessment order. The assessee explained that since assessee suffered loss in share trading and never intended to brought forward of set-off purpose, therefore, no loss was declared in the return of income. The assessee further maintained the details of share trading which have been examined by the authorities below and came to the conclusion about total turnover of assessee. The margin mone....