TaxTMI 
TaxTMI 
2024 (9) TMI 78
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....n 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, 1961 on allegation that appellant had obtained artificial profit from....
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....lieve 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/s. Latin Manharlal Securities P. Ltd. during the financial year 2013-14 relevant to the assessment year 2014-15 : Sl. No. ....
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....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 in Equity/Derivative Trading 16,00,000 BSE Equity Derivative Profit Total 1,27,52,200 3. The assessee-company has failed to offer this income derived by way of transactions entered, hence, the income is undisclosed and the nature and source of transactions remains unexplained. 4. On....
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....loyees 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 -- -- VII Profit before Extraordinary Items and Tax (V - VI) 1,649,198.22 (3,268.101.00) VIII Extraordinary Items -- -- IX Profit before Tax (VII - VIII) 1,649,198.22 (3,268.101.00) X Tax Expense: Tax Adjustment of earlier written back / W/o --- (5,000.00) XI Profit for the Year (IX - X) 1,649,198.22 (3,273,101.00) XII Profit for the year (XII) -- -- XIII Earnings per equity Share @10/- each (1) Basic 1.....
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....t. A close perusal of the notice and the observations of the Assessing Officer show that the entire proceedings revolve around the fact that the alleged parties have claimed losses and accordingly evaded taxes. Whereas the facts discussed hereinabove show that the assessee has earned derivative gains of Rs..1,27,27,019/- from M/s. Latin Manharlal Securities Pvt., Ltd. Therefore, the entire observations / basis of the assessment is factually incorrect. Since the assessment has been reopened on the wrong facts the impugned assessment order deserves to be quashed. 8. As mentioned elsewhere, the assessee has included the profit of Rs..1,27,27,019/- in its profit and loss account for the year under consideration, however, while concluding the a....