TaxTMI 
TaxTMI 
2022 (10) TMI 484
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....n turn, arose from order passed by the AO under section 271(1)(c) of the Act, for assessment year 2010-11. 3. When these appeals were called for hearing, neither anyone appeared on behalf of the assessee nor was any application seeking adjournment filed. Therefore, we proceed to dispose off these appeals ex-parte, qua the assessee after hearing the learned Departmental Representative ("learned DR") and on the basis of material available on record. 4. Since both the quantum appeals pertain to the same assessee and issues involved are also common, therefore, the quantum appeals are taken up together for the sake of convenience. In both the quantum appeals, being ITAs No. 1794/Mum./2022 and 1795/Mum./2022, grounds raised by the Revenue are also identical. The appeal of the Revenue for the assessment year 2010-11 was taken up as the lead case and the decision rendered therein would apply mutatis mutandis to appeal for assessment year 2011-12. ITA No. 1794/Mum/2022 Revenue's Appeal - A.Y. 2010-11 5. In this appeal, the Revenue has raised following grounds: "1. Whether on facts and circumstances of the case and in law, Ld. CIT(A) has not erred in arriving at a conclusion that no t....
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....rn of income, the assessment in the case of the assessee was completed under section 144 of the Act on the basis of the material available on record vide order dated 27/12/2017, passed under section 144 r/w section 147 of the Act. The AO also directed initiation of penalty under section 271F as well as section 271(1)(b) and 271(1)(c) of the Act. Vide aforesaid order, the AO made an addition of Rs.16,36,86,460, on account of transaction by the assessee in shares of Grasim Indus and Cipla Ltd. 7. Upon receipt of the aforesaid order, assessee filed appeal before the learned CIT(A). In appeal before the learned CIT(A), assessee submitted that notices during the assessment proceedings were sent to the earlier address of its consultant and thus could not be responded by the assessee. The assessee further submitted that pursuant to its application, the SEBI had cancelled its FII license vide letter dated 08/02/2008. Subsequently, the local custodian of the assessee, Deutsche Bank AG, had also closed the DEMAT account of the assessee on 13/02/2008. Accordingly, it was submitted that assessee did not have any investment activities in India during financial year 2009-10. The assessee also f....
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....nder A's PAN & to which entities these trades were allocated. 5. Will submit the details in the form of affidavit from Principal Officer of Company. 5.1.8 Subsequently, an affidavit from Shri Sandeep Bhatia, Director of Macquarie Capital Securities (India) Pvt. Ltd. was submitted stating as under:- * MCSIPL had not booked any trades to Principal Investors Fund Inc International Growth Fund having PAN-AADCP6771H during the A.Y 2010-11. * We refer to earlier confirmation to the Principal Investor Group ("PG") on captioned matter dated 12 July 2019 wherein we had mentioned that data provided to MCSIPL was incomplete as we noticed that in few cases, the total quantity mentioned was less than the actual quantity we executed for two scrips namely Cipla and Grasim for the Financial Year (FY) 2009-10. This discrepancy has now been resolved through the PG sharing of the copy of AIR data for the concerned trades, which we note excluded any trade with transaction value of less than Rs.20,000 Previously we reconciled that data for all the trades including those with transaction value of less than Rs.20,000. We therefore confirm that our submitted data is accurate and have complete ....
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....ocation Contracting Post market close, our back-office sends the block confirms (aggregated executed quantity) to the client's back office for the trades executed during the day Subsequently, the client gives break up of quantities to be booked out to various sub accounts/ managed fund at the weighted average price ("Trade Allocations) based on which the trade settlement process takes place of the respective sub account level. The trade allocation details are sent through the electronic trade matching & confirmation system known as OMGEO/CTM. Once the allocations are received, Brokers issues contract note to the respective sub accounts /managed funds based on the Trade Allocation. The contract note is sent out using the Straight Through Process (STP) to the local custodian of the respective sub accounts. The Trade Allocation data is also reported to the exchange for custodial confirmation. The local custodian is required to confirm the trade with (i) the brokers contract note, (1) Broker reported trade allocation to the exchange; and (ii) based on the client's instructions for the trade. Based on all three way confirmation, the local custodian accept the trades for Di....
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....e Adjudicating Authority though the statements of those witnesses were made the basis of the impugned order is a serious flaw which makes the order nullity inasmuch as it amounted to violation of principles of natural justice because of which the assessee was adversely affected." 10. We further find that Hon'ble Supreme Court in I.C.D.S. Ltd. vs CIT, [2020] 273 Taxman 12 (SC) held that where issue involved was about not extending opportunity to appellant to cross-examine witnesses relied upon by Assessing Officer, entire matter would be considered by First Appellate Authority afresh by giving fair opportunity to both sides to espouse their claim. We are of the considered view that the principles of natural justice which applies in favour of assessee also equally applies in favour of the Revenue, since both are parties in appeal before the learned CIT(A). Accordingly, we deem it appropriate to restore the appeal before the learned CIT(A) for de novo adjudication. We further direct the learned CIT(A) to not only share the information received, pursuant to summons under section 131 of the Act, with the AO but also grant opportunity of cross examination of the concerned persons of the....