2024 (7) TMI 831

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....of the case, the CIT (A) has erred in confirming the addition made by the AO on the basis of incomplete "reasons to believe recorded i.e. without any trade details and/or supporting especially when it was stated that the assessee was alleged to have misused the client code modification facility on the NSE. 3. On the facts and circumstances of the case, the learned CIT (A) has erred both on facts and in law in confirming the addition despite the fact that addition has been made by AO without conducting any independent enquiry during the course of assessment proceedings. 4. On the facts and circumstances of the case, the learned CIT (A) has erred both on facts and in law in confirming the addition by ignoring the fact that the AO rejected....

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.... reassessment proceedings and issued notice u/s 148. The assessment is completed u/s 147/143(3) of the Act vide order dated 30.03.2016 and AO added Rs. 37,48,286/- in the taxable income of the assessee on account of client code modification and commission paid thereon by computing the total income of the Assessee at Rs. 54,61,675/-. 4. As against the assessment order dated 30/03/2016, the Assessee preferred an Appeal before the CIT(A). The Ld. CIT(A) vide order dated 28/06/2019 dismissed the Appeal filed by the assessee. Aggrieved by the order of the Ld. CIT(A), the assessee preferred the present Appeal on the Grounds mentioned above. 5. None appeared for the assessee. The records shows that several notices have been issued by the Registr....

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....nd dominant control over the individual employees who carried out the work related to punching of data in respect of trades done online. The AO is issued the notice u/s 131 and information was sought from M/s Fairwealth Securities Pvt. Ltd., the company has replied that data is not available and trade file contains only details of final positions. The AO has asked the appellant why the sum of Rs. 37,02,486/- should not be assessed as income. The AO has not accepted the submission of the appellant as all the modifications were done on three days only le. 22.03.2010, 23.03.2010 and 25.03.2010. No modification was done either on any previous dates or later dates during the period 01.04.2009 to 31.03.2010. The client code of other clients are e....

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....e addition of Rs. 37,02,486/- and Rs. 46,300/- needs to be quashed. 7.3 I have considered the facts of the case, finding of the AO and submissions of the appellant. The appellant is a Director M/s Fairwealth Securities Pvt. Ltd through which transaction of shares client code has been modified in 54 trades as a result of which the profit accruing in these trades was transferred into a loss of Rs. 37,02,486/-. The AO has confronted the Information received from the investigation wing and issue summon u/s 131 to Fairwealth Securities Pvt. Ltd. to furnish the desired information. In response to that it is informed that data is not available and that trade file contains only detail of final position. The appellant has tried to justify the loss....