AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2022 (7) TMI 940
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....acts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the entire addition of Rs.8,80,324/- holding that the disallowance made by the Assessing officer on account of Client Code Modification is unwarranted and that the assessee had no intention to evade tax by availing the benefit of Client Code Modification failing to appreciate that the entire transactions of purchase and sales for booking the losses is by way of sham transaction through the broker M/s B P Equities Pvt. Ltd. (ii) On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the entire addition of Rs.8,80,324/- holding that the assessee had not intention to evade taxes by availing the benefit of Client Code Modification....
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....client code 43334 also belongs to assessee and as such the above transactions pertained to assessee only. Declining the contentions raised by the assessee the AO proceeded to hold that the entire transactions of purchase and sale of shares entered into by the assessee and losses booked through "Client Code Modification" is held as a sham transaction and the loss claimed of Rs.8,80,324/- in the P& L Account is disallowed and thereby framed the assessment under section 143(3) r.w.s 147 of the Act @ total income of Rs.19,09,734/-. 3. Assessee carried the matter before the Ld. CIT(A) by way of filing appeal who has partly allowed the appeal. Feeling aggrieved with the impugned order passed by the Ld. CIT(A) the Revenue has come up before the T....
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....ecurities on NSE through its brokers. During the course of assessment proceedings, the AO observed from the details availed from NSE that the appellant had entered and settled the transactions on the same day and it had resulted in loss of Rs.8,80,324/- and since it was reported that there were client code modification in these cases and as the losses were booked through client code modifications, they were a sham transaction. Therefore, the AO disallowed the loss claimed by the appellant of Rs.8,80,324/- in his order u/s.143(3) r.w.s.147 dated 29.12.2016. 5.1.2 During the course of appellate proceedings, the appellant had submitted the ledger copy of the broker i.e. M/s. B.P. Equities P. Ltd., copy of the contract notes and the copy of ....
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....of a part of the income of the appellant, and it cannot be established that there has been an escapement of income on account of client code modification. The AO has proceeded to make the additions in view of suspicious circumstances, assumptions and allegations arising from the report of investigation wing without conducting necessary enquiries himself and without bringing any circumstantial evidence on record. The facts brought on record by him are not sufficient enough to prove that the client code modifications in the case of the appellant are not done so as to rectify any error which may have occurred while punching the orders by the broker M7s. B.P. Equities P. Ltd. but are on account of facilitating losses and evasion of tax. It is o....
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....s of "Client Code Modification" i.e. from which code to which code the transactions have been shifted, the details of scrip in which client code has been modified, the detail of the parties involved in modification and further investigation show that the loss of someone else had been shifted to the assessee one cannot come to the definite conclusion that the "Client Code Modification" was done to evade the tax." However, when we examine assessment order it has come on record that the assessee claimed that the client code 43334 as mentioned in annexure 1 does not belong to the assessee whereas the client code of the assessee is 7550 and if the code has been changed it is due to mistake committed by the broker namely Adroit Financial Services....