TaxTMI 
TaxTMI 
2025 (9) TMI 1316
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....s with the consent of parties, both the appeals were clubbed, heard together and are decided by common order to avoid the conflicting decision. For appreciation of fact, facts in A.Y. 2013-14 is treated as lead case. The assessee has raised following grounds of appeal: "1. On the Facts and Circumstances of the case and in Law, ld. AO has erred in reopening the assessment on the basis of the information, which was not relevant for Appellants' case. 2. On the Facts and Circumstances of the case and in Law, ld. AO has erred in making assumption that appellants had indulged into fraudulent Clint Code Modifications for the purpose of providing accommodation profits to their clients. 3. On the Facts and Circumstances of....
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.... brokers about profit or loss. The assessee has also made transaction of Rs. 7,73,830/- during relevant financial year. It was found the assessee have made 13 client code modification for a total volume of Rs. 14,99,830/- in AY 2013-14. The assessee made transaction of sale and purchase for various clients. On the basis of such information, the assessing officer has a reason to believe that taxable income in case of assessee has escaped assessment. In response to notice under section 148 filed its return of income on 15.04.2019 declaring Nil income. The assessing officer after serving reasons recorded proceeded for reassessment. The assessing officer issued show cause notice on the basis of information available with him on show cause as to....
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....complied KYC requirement and none of the clients are fake. The assessing officer has not made any enquiry from the clients of assessee. Merely acted on suspicion is not justified. No independent investigation of fact was carried out by assessing officer. 3. The ld. CIT(A) on considering the submission of assessee upheld the action of assessing officer by taking view that assessing officer have information that platform of NMCE was misused by various before entities who entered in bogus transaction. The assessee is one of the brokers who have modified transaction of various clients. The assessee has not disclosed this transaction nor declared commission on such client code modification and hence addition made by assessing officer was uphe....
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.... of assessing officer. The ld. AR prayed to delete the entire addition. To support his submission, the ld. DR for the revenue relied on the decision of Mumbai Tribunal in Haresh Rajnikant Jhawry vs DCIT ITA No. 4449 & 4958/Mum/2014). 5. On the other hand, the ld. Sr. DR for the revenue supported the order of assessing officer. 6. I have considered the rival submissions of both the parties and perused the orders of lower authorities carefully. I find that case of assessee was reopened on the basis of information from investigation wing about client code modification. I find that during assessment, the assessee furnished detail of transaction entered into NSEL on behalf of its client. The assessee also furnished the detail and explanato....