2024 (9) TMI 78

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....ance of the assessee read as under: - "1. On the facts and circumstances of the case and law, the Ld. CIT(A) failed to consider that notice issued u/s 148 of the Income Tax Act, 1961 (the Act) dated 31.03.2021 which is bad in law and require to be quashed. 2. On the facts and circumstances of the case and law, the Ld. CIT(A) failed to consider that the permission obtained u/s 151 of the Act is not in accordance with law, as permission is given by PCIT in mechanical manner. Therefore, resultant proceedings u/s 148 are also bad in law and require to be quashed. 3. On the facts and circumstances of the case and law, the Ld. CIT(A) erred in confirming addition of Rs. 1,27,52,200 under section 68 of Income Tax Act, 196....

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....(in short "Act"), the Assessing Officer issued notice dated 31.03.2021 stating the he has reasons to believe that income chargeable to tax for the year under consideration has escaped assessment within the meaning of section 147 of the Act. Issues as per reasons recorded for reopening the assessment read as under: - Issues as per reasons recorded for reopening The assessee-company has e-filed its return of income for the assessment year 2014-15 on September 25, 2014 declaring total income of Rs. nil. 2. As per information gathered from the ITD system as well as e-filing portal, it is noticed that the assessee-company M/s. Aadinath Securities P. Ltd. has entered into the following fictitious transactions through M/....

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.... 10. AAACL2767L Latin Manharlal Securities P. Ltd. 2013-14 Fictitious Profits in Equity/Derivative Trading 6,40,000 BSE Equity Derivative Profit 11. AAACL2767L Latin Manharlal Securities P. Ltd. 2013-14 Fictitious Profits in Equity/Derivative Trading 11,20,000 BSE Equity Derivative Profit 12. AAACL2767L Latin Manharlal Securities P. Ltd. 2013-14 Fictitious Profits in Equity/Derivative Trading 60,000 BSE Equity Derivative Profit 13. AAACL2767L Latin Manharlal Securities P. Ltd. 2013-14 Fictitious Profits in Equity/Derivative Trading 2,64,000 BSE Equity Derivative Profit 14. AAACL2767L Latin Manharial Securities P. Ltd. 2013-14 Fictitious Profits i....

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....rch, 2013 I. Revenue from operations 8 10,058,736.28 7,178,769.07 II. Other income 9 511,823.11 907,894.25 III. total revenue (I + II)   10,570,559.39 8,086.663.32 IV EXPENSES         Purchase of Traded Goods 10 10,103.276.01 10638582.52   (Increase) Decrease in inventory of traded 11 (1,744,758.88) 218679.94   Employees Benefit Expenses 12 -- --   Other EXPENSES 13 562,844.04 497501.86       8921361.17 11354,764.32 v. Profit Before Exceptional and Extraordinary items and TAX (III - IV) 1,649,198.22 (3,268,101.00) VI Exceptional Items ....

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.... Latin Manharlal Securities Pvt. Ltd. Derivative Gain 1,27,27,019 2. Spectrum Derivative Gain 14,39,510 3. Aadinath Securities Derivative Loss (1,56,53,034) Intraday Gain 19,982 4. CD Equi Search Pvt., Ltd., Derivative Gain 25,83,459 Intraday Gain 5,974   Trading Gains in Shares & Commodities Total 11,20,910 7. From the above details, it can be seen that the derivative gain of Rs..1,27,27,019/- from M/s. Latin Manharlal Securities Pvt., Ltd., is duly recorded in the financial statements returned for the year under consideration. Therefore, the very basis for the reopening of the assessment is found to be factually incorrect. A close perusal of the notice and the obser....