2023 (12) TMI 1479

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.... Director of Income Tax to the effect "that some brokers by misusing the Client Code Modification Facility (for short "CCMF‟) in F & O segment of National Stock Exchange (for short "NSE‟) during March 2010 generated fictitious Profit & Loss. As per the information, these profit & losses was given to different client /beneficiaries according to their requirement. From the list of beneficiaries who had taken fictitious losses and profits, it seems that the Assessee is one of the beneficiary who has taken losses to the tune of Rs. 67,00,488/- or more." the assessment of the Assessee was re-opened u/s 147 of the Act by recording the reasons for reopening. Accordingly notice under section 148 dated 30.03.2015 was issued and served up....

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....e, there is payable effect to the income i.e. (Rs. 54,29,959/- + Rs. 54,29,959/- = Rs. 1,08,59,918/- ), therefore, an amount of Rs. 1,08,59,918/- is reduced from carry forward loss from trade loss brought forward. The similar loss obtained from F & O segment of Rs. 55,60,770/- is also reduced from the trade loss. The balance loss allowable to the Assessee to carry forward for the subsequent year after reducing total loss, restricted to Rs. 23,22,142/-. In effect the AO made the addition of Rs. 1,64,20,688/- on account of alleged fictitious loss incurred by the Assessee in share trading and F & O segment. 3. The Assessee being aggrieved challenged the said addition before the Ld. Commissioner, who vide impugned order deleted the said addi....

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....dingly. I find the additions made by the Ld. AO are not substantiated with any evidence therefore the Assessing Officer is directed to delete the addition of Rs. 1,64,20,688/- on account of fictitious loss incurred by the appellant in share trading and F&O segment. The appeal on these grounds is allowed. 5.1 Ground No. 1(a-c): In view of the appeal being allowed on ground 2 and 3 this ground is now purely academic and hence does not require separate adjudication." 4. The Assessee being aggrieved is in appeal before us. 5. Heard the parties and perused the material available on record. The Appellant mainly focused that the Ld. Commissioner erred in deleting the addition made by the AO without appreciating the involvement of th....