TaxTMI 
TaxTMI 
2025 (3) TMI 1761
X X X X Extracts X X X X
X X X X Extracts X X X X
....e assessment year 2015-16. "1. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the disallowance of Rs. 65,26,188/- of losses incurred in derivatives trading ignoring the fact that the action of the Assessing Officer was based on credible Information received from the DGIT Investigation Wing, Mumbai?" 2. "Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the disallowance of Rs. 65,26,188/- of losses incurred in derivatives trading without appreciating the fact that the assessee has traded through broker NS Broking Put Ltd and the counter parties Odyssey Securities Pvt Ltd & Kalyan Securities Put Ltd, were indulged in genera....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the Act was issued. Subsequently after the decision of the Honourable Supreme Court in the case of Union of India and Others V/s Ashish Agrawal in CA No. 3005/2022 notice u/s 148a(b) was issued on 27.05.2022 and another notice u/s 148 was issued on 30.07.2022 In response to the same the assessee filed the return on 30.08.2022 declaring a total income of Rs 5,71,290/-. Notices u/s 143(2) and 142(1) were issued and served. 3. The A.O on the basis of information received from the Investigation Wing Mumbai on the "tax evasion through trading in illiquid derivatives, option segment, through trade reversal on NSE / BSE / USE" undertaken through the project Falcon observed that the assessee has traded in currency derivatives through a SEBI reg....
X X X X Extracts X X X X
X X X X Extracts X X X X
....fore we have decided to take up all these grounds together and to adjudicate the same through the present consolidated order. 8. We have heard the counsels for both the parties and have perused the material placed on record, judgement cited before us and the orders passed by the revenue authorities. From the records we noticed that the AO received information which shows that the assessee had shown fiction profits / losses aggregating to Rs. 65,26,188/- during the year under consideration and thus artificially reduced the incidence of taxation on their profit by Rs. 65,26,188/-, which had escaped assessment. Therefore the case of the assessee was reopened u/s 147 of the Act to bring the income escaping assessment to tax for the above sai....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng that the assessee had solely relied upon the statement of Harshvardhan Kayan of M/s Kayan Securities and apart from that there are no other details of such statement given in the assessment order, as to when the said statement was recorded, under which section it was recorded, date of the statement etc. The Ld. CIT(A) while deleting the addition also mentioned that neither of any such statement is abstracted in the assessment order nor the copies of the same were provided to the appellant during the assessment proceedings. It was further mentioned that the assessee was also not provided with any opportunity to cross examining the persons whose statements were used against the assessee. Even no case had been made out to bring on record th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....dicate of share broker, entry operator to provide fictitious loss / profit to the entities who had intention to evade tax, which was detected by the Investigation Wing. Although in our view Ld. CIT(A) was right in point out that there are no other details of such statement given in the assessment order as to when the said statement was recorded, under which section it was recorded, date of statement etc., but at the same time additions cannot be deleted merely because of these irregularities. As in our view, Ld. CIT(A) appeal has coterminous powers with that of AO therefore, in other words, what an assessing officer can do, a Ld. CIT(A) can do and the same applies in the reverse i.e. what an assessing officer cannot do, a Ld.CIT(A) canno....