TaxTMI 
TaxTMI 
2019 (12) TMI 669
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.... the reasons assigned for doing so are wrong and contrary to the facts and the provisions of the law. WITHOUT PREJUDICE TO THE ABOVE 2. On the facts and under the circumstances of the case, the learned Assessing Officer has erred in not allowing the speculation loss pertaining to the current yeari.e. A.Y 2010-11 of Rs. 4,831/- to be carried forward to subsequent years and the reasons assigned for doing so are wrong and contrary to the facts of the case and the provisions of the law. 3. On the facts and under the circumstances of the case, the learned Assessing Officer has erred in making an addition of Rs. 2,71,800/- to the appellant company's total income on the alleged ground of shifting of profit/loss on share ....
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....esulting in No profit/No loss Kedia Finvest Consultant AACCK 1169R 2010- 11 Kedia Shares 55265 216535. 85 271800. 85 271800. 85 2 1 0 The above information has been duly examined by the undersigned. Modification of the client codes is a practice under which brokers change the client codes in sale and purchase order of securities after the trades are conducted. While it is legally permitted to rectify inadvertent errors in punching order, such modification have also been misused for manipulative activities in the market. SEBI conducted a probe into "Modification of client codes" by brokers, pursuant to observations by the Finance Ministry about many such modifications taking p....
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....rlier, it can be reasonably concluded that there is a failure of the part of the assessee to disclose fully and truly all material facts necessary for its assessment. In view of the above, I have reasons to believe that income Rs. 271800.85 chargeable to tax has escaped assessment by reason of the failure on part of assessee to disclose fully and truly all material facts necessary for its assessment for A.Y. 2010-11 within the meaning of Sec 147 of Income-tax Act, 1961." Accordingly, notice u/s 148 dated 30.03.2016 was issued and truly served upon the assessee. In response to this notice, the assessee filed a letter dated 06.04.2016 requesting to treat its e-return of income filed u/s 139(1) of Income-tax Act, 1961 on 22.0....
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....yond doubt that there is escapement before issuing the notice. This can be done at the time of assessment but not at the time of issue of notice. Reliance is placed on : i) Sun Pharmaceutical Industries Ltd. Vs DCIT 353 ITR 474 (Guj), where the Hon'ble High Court held the formation by belief is essentially within AO's subjective satisfaction-at the stage of issue of notice, only question is whether there was relevant material on which the AO could have formed requisite belief. In case of M/s. Coronation Agro Industries Ltd. v/s DCIT 6(2)(1), as brought out by the Hon'ble Bombay High Court, the A.O did not have the requisite information like date of transaction, nature of transaction and detail of counter party.....
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....d application of mind has led the Assessing Officer to form a reasonable belief that there is not only an escapement of income but there has been failure to truly and fully disclose all material facts and information as the modus operandi of shifting profits was not known to the Revenue as not disclosed by the petitioner when the Assessing Officer passed the order in regular assessment proceedings. 4. We note that the reasons in support of the impugned notice accept the fact that as a matter of regular business practice, a broker in the stock exchange makes modifications in the client code on sale and /or purchase of any securities, after the trading is over so as to rectify any error which may have occurred while punching the orde....