2026 (4) TMI 246

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....referred to as 'the Act') dated 26.05.2023 by the Assessing Officer, NeFAC, Delhi (hereinafter referred to as 'ld. AO'). 2. The only issue to be decided in this appeal is as to whether the Learned CITA was justified in confirming the addition made in the sum of Rs 93,63,800/- under section 69A of the Act in the facts and circumstances of the instant case. The Assessee had also raised an additional ground on 8-4-2025 challenging the validity of reassessment under section 147 of the Act. We find that the additional ground raised by the Assessee goes to the root of the matter and the facts relevant for its adjudication are on record. Hence the same are hereby admitted and taken up for adjudication along with original ground raised by the As....

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....s have been executed through the same broker M/s R K Stock Holding Pvt. Ltd. on the Bombay Stock Exchange. The Learned AO noted that SEBI has been investigating cases involving reversal trades covering the period 1-4-2014 to 31-3-2015 and in the interim order dated 20-8-2015, the SEBI had found that the loss-making entities were trading mainly in options on individual stocks which were thinly traded. The trades by these loss-making entities, in many cases, contributed to 70 to 100% of total traded volume for the contracts on those days. The trading done by loss-making entities in stock options in the above manner, accounted for significant proportion of their overall trading on that segment. On majority of occasions, the quantity of stock o....

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....ll these collectively contribute to the scenario of entire reassessment proceedings getting vitiated. Hence the assumption of jurisdiction under section 147 of the Act by the Learned AO itself is flawed as it is based on irrelevant facts and mechanical approval by the competent authority for reopening. 4.2. We find that the Learned AO finally concludes that the assessee had earned non-genuine gain amounting to Rs 93,63,800/- which has been set off against unutilized losses of Assessment Year 2012-13. But the said gain of Rs 93,63,800/- has been already offered to tax by the assessee in the return of income itself. While this is so, where is the escapement of income by assessee? As stated in previous paragraph, the Learned AO is not seeki....