Just a moment...

Report
FeedbackReport
Bars
Logo TaxTMI
>
×

By creating an account you can:

Feedback/Report an Error
Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
TMI Blog
Home / RSS

Share Trading Profits Upheld Despite Broker's Suspension; No Evidence of Bogus Purchases Justifies Income Addition

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ITAT found AO's calculation of undisclosed income from alleged bogus share purchases to be incorrect. While the broker's contract note was suspended by NSE, no allegations were made against sale transactions or declared profits. The CIT(A)'s deletion of excess addition was upheld. Following precedent from jurisdictional HC in similar cases where 12.5% of bogus purchases was deemed reasonable, ITAT determined the addition confirmed by CIT(A) was unwarranted. The assessee's appeal was allowed, resulting in complete deletion of the disputed addition. The tribunal emphasized that when sales and profits are accepted, merely questioning purchase transactions without substantial evidence is insufficient for sustaining additions.....