TaxTMI 
TaxTMI 
2026 (10) TMI 267
X X X X Extracts X X X X
X X X X Extracts X X X X
....ppeal against the Assessment Order, dated 29/03/2022, passed under Section 147 read with Section 144B of the Income Tax Act, 1961 [hereinafter referred to as 'the Act'], for the Assessment Year 2015-2016 2. The Assessee has raised the following grounds of appeal: 1. The Ld. CIT(A) was grievously erred in confirming the addition made by the Ld. A.O. of Rs. 75,64,838/; on account of trade reversible profit and 2% on commission i.e. Rs. 1,51,297/-. The appellant submits that the Ld. CIT(A) has not considered the submission made during the appellate proceedings. 2. The notice u/s. is illegal and it is commensurate with the return of income and the entire income in BSE trades was already offered to tax. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....usiness loss/gains. Therefore, again reassessment proceedings were initiated in the case of the Assessee by issuance of notice, dated 30/03/2021, under Section 148 of the Act. In response to the said notice, the Assessee filed return of income on 19/04/2021. The aforesaid reassessment proceedings culminated into passing of Assessment Order, dated 29/03/2022, under Section 147 read with Section 144B of the Act. The Assessing Officer concluded that the Assessee had earned profit of INR.73,76,700/- by undertaking trades through broker (namely Good Luck Securities) on Bombay Stock Exchange. The Assessee had managed to set-off the aforesaid profits against losses and therefore, managed to avoid paying taxes. Therefore, the Assessing Officer trea....
X X X X Extracts X X X X
X X X X Extracts X X X X
....O'. It is not disputed by the Revenue that the aforesaid profits were disclosed by the Assessee and offered to tax in return of income. The case of the Assessee is that the aforesaid profits were earned by the Assessee by undertaking transactions in normal course of business of purchase/sale in future/options on BSE. On the other hand, the stand taken by the Revenue is that the Assessee had undertaken the buy/sell trades within few months to earn handsome profits which showed that the transactions were predetermined transactions. 10. On perusal of the financial statement for the Assessee for the relevant previous years, we find that the Assessee was regularly engaged in the business of trading in securities and had disclosed 'Revenue fro....
X X X X Extracts X X X X
X X X X Extracts X X X X
....order dated 20.08.2015, the SEBI had found that. (i) 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. (ii)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. (iii) On majority of occasions, the quantity of stock options bought and sold by the loss-making entities for a contract was identical; however, there was a significant difference in the sale value and buy value of the transactions resulting into significant loss t....