2019 (7) TMI 1536

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....0-11. 2. The above assessees, individuals, filed their return of income. Based on the investigation wing report from Ahmedabad, their returns were re-opened. The Ld.AO found that the transaction of purchase and sale of shares entered into by the respective assessee and the losses booked through Client Code Modifications (CCM) is a sham transaction and disallowed loss arrived due to CCM by the above assessees at Rs. 8,51,927/- and Rs. 8,84,924/-, respectively. Aggrieved against those orders, the above assessee's filed appeals before the CIT(A). The Ld.CIT(A) dismissed the respective appeals. Aggrieved against those orders, the above assessee's filed appeals before this Tribunal, supra. 3. The above assessee's filed additional grounds ple....

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....ancial Services, M/s. Inventure Growth & Securities Ltd., & M/s. Sun 'N' Sun Fin Services Ltd. The above transactions led to a loss in trading and the brokerwise loss was as under:- In the case of Late Ugama Kavar in ITA No.2649/Chny/2018 Sun 'N' Fin Services Ltd. (-) 4,82,575/- Eden Financial Services (-) 4,89,429/- Inventure Growth & Securities Ltd. (-) 4,94,934/- Total (-) 14,66,938/- In the case of Shri Rajendra Kumar Kavar in ITA No.2650/Chny/2018 Sun 'N' Fin Services Ltd. -12,78,788/- Eden Financial Services -9,73,747/- Inventure Growth & Securities Ltd. -9,81,340/- Total -32,33,875/- During the scrutiny assessment, the Assessing Officer disallowed Rs. 8,51,927/- & Rs. 8,84,924/-, in the respective cases, as ....

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.... was re-opened based on the investigation report furnished by the Ahmedabad unit and the assessees were given due opportunity by the lower authorities and they have arrived the decision on merits. 7. We heard the rival submissions and gone through the relevant material. The assessees are traders in Shares, Futures and Options. During the relevant period, they entered into purchase and sale of Futures through M/s. Eden Financial Services, M/s. Inventure Growth & Securities Ltd., & M/s. Sun 'N' Sun Fin Services Ltd. The assessees placed their instruction to the brokers over phone and the brokers entered the order in the system. Punching errors have been conducted by the brokers at their end with no involvement of the assessee whatsoever. Th....