TaxTMI 
TaxTMI 
TaxTMI 
2022 (2) TMI 592
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....erred in raising fresh and new ground of objection without giving proper notice to the appellant by just mentioning on order sheet entry dated 18.06.2019. 3. Moreover, the Ld. CIT(A) cannot go beyond the matters that arose out of the proceedings before the AO in gross contravention of judgment of Apex Court inCIT v. Shapoorji Pallonji Mistry [1962] 44 ITR 891 (SC) and against the judgement of Hon'ble Delhi High Court in CIT v. Sardari Lai & Co. [2002] 120 Taxman 595. 4.1 That the Ld. CIT(A) grossly erred in treating a sum of Rs. 584,093/- (out of total payment of Rs. 975,000/- made to broker M/s Bezel Stock Brokers Pvt Ltd) as unexplained and out of unexplained sources and adding the same to the returned income of the appellant. 4.2 T....
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....nd income relating to securities (derivative) transactions were duly disclosed. The Assessing Officer, thereafter, proceeded to frame the assessment u/s 143(3) of the Income-tax Act, 1961, hereinafter referred to as the "Act". Thereby the Assessing Officer noticed that on perusal of computation of income and profit & loss account filed by the assessee it was observed that assessee had debited a sum of R. 9,35,983.75 as loss on sale of shares (derivatives). In response to the query, the assessee submitted that he had done share business with M/s Bezel Stock Brokers Pvt. Ltd. in future only and incurred loss, which was set off against business income of Rs. 12,40,535/-. It was stated before the Assessing Officer that speculative transaction h....
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....a small case and addition of only Rs. 584,093/- has been made by the CIT(A), on issues not raised by AO. That the Ld. CIT(A) grossly erred in treating a sum of Rs. 584,093/- (out of total payment of Rs. 975,000/- made to broker M/s Bezel Stock Brokers Pvt Ltd) as unexplained and out of unexplained sources and adding the same to the returned income of the appellant. 2) In the present case, a sum of Rs. 975,000/- was paid to broker M/s Bezel Stock Brokers Pvt Ltd during the year from HDFC Bank A/c of the appellant by cheques. During the year, the appellant had deposited Rs. 800,000/- from time to time during the year. Source of this cash deposit of Rs. 800,000/- was duly examined by the AO wide appellant reply dt 26.12.2018 and order sheet ....
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....he difference between the opening balance of Rs. 216,113/- and closing balance of Rs. 25,216/-, ignoring all the receipts and payments of cash flow chart. It is obviously wrong and baseless and source of Rs. 800,000/- is fully explained. Ground No.-5 That the Ld. CIT(A) further erred in not confronting any objections/disagreement with the appellant's explanations. In fact, no objections/dis- agreements are on record and the appeal order has been passed solely on her surmises and conjectures." 7. On the other hand, learned Sr. DR opposed the submissions and supported the orders of the authorities below. He contended that the learned CIT(Appeals) has examined the same issue which was before the assessing authority and there was no new is....
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....ined. A perusal of the Transaction summary as also the contract notes shows that the appellant is engaged in intraday trading in Futures & options (F&Os). The AO has made an addition of peak purchase treating it as unexplained investment. The AO very clearly has little knowledge of the working of the Stock exchange. It is important to understand that in intra-day trading the buy/sell orders are squared off on the same day. Intraday trading, also called day trading, is the buying and selling of stocks and other financial instruments within the same day. In other words, all positions are squared-off before the market closes and there is no change in ownership of shares as a result of the trades. This is different from regular trading or deliv....
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....ing regular books of account that have been duly audited. He submitted that cash-in-hand was available as were the balances in bank account. This claim was examined. It is noted that as per Balance sheet as on 31.03.2015, cash-In-hand available with the appellant is Rs. 2,16,113/- and cash in hand as on 31.03.2016 is Rs. 25,206/-. Scanned copies of Balance sheet reflecting the aforesaid cash-in-hand is reproduced as under (overleaf) ...... From a perusal of the above, it is noted that the appellant used cash-in-hand amounting to Rs. 1,90,907/- (Rs. 2,16,113/- less Rs. 25,2016/-) during the period 01.04.2015 to 31.03.2016. This means the appellant's claim that investment purchase of shares was made from cash balances available in bus....