2024 (6) TMI 874

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....come from transaction in derivatives (futures) transactions declaring total turnover of Rs. 42,61,003/- and offered income u/s. 44AD @8% during the A.Y. 2015-16. The ld. AO noted that there were some 15 page of the system information pertaining to the shares transaction under the assessee's PAN which works out to Rs. 5,24,27,992/- and based on such information on the system, he has applied 8% and worked out the profit of Rs. 41,94,239/-. 3. The ld. Counsel for the assessee submitted that at no point of time the department had shared these details for the alleged share transaction of Rs. 5,24,27,992/-. However, Ld. AO without elaborating or confronting the details had made the addition in the following manner:- 3. On perusal of t....

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..... The assessee's AR has neither filed any computation of income wherein the total income of the assessee is recomputed based on details/ material available on record:- Total income as per return filed on 07.09.2015 Rs. 26,52,806 Add. Difference on account of 8% u/s. 44AD Rs. 38,53,359 Total assessed income Rs. 65,06,165 Rounded off u/s. 288A to Rs. 65,06,170 " 4. Even before the ld. CIT(A) also, these details of alleged transactions have not been verified and ld. CIT(A) has simply held that profit is estimated @50% on the total turnover declared by the assessee i.e. 42,61,003/- without assigning any reasons. The relevant observation of the ld. CIT(A) reads as under:- "5.5 I have carefully considered t....