Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (9) TMI 1060 - AT - Income TaxCIT order u/s 250 - not allowing the loss incurred to be set-off against other income by AO - Held that:- The investigation initiated by the AO is not taken to the logical end. In our view, the AO prematurely shifted the onus to the assessee. At the same time, the assessee also relied on the human probabilities without doing his part by obtaining the information about the correctness of the address of Aadya Trading and Investment Pvt. Ltd if any. Regarding Client Code Modification ('CCM') related allegations of the AO, we find that the NSE has a definite policy in this regard. We find the AO made enquiries with the NSE, who replied to the AO vide the letter dated 3.11.2010. The same is extracted at para 4.1 of the Assessment order. On perusal of the same, we find that the language used in the letter varies with the one used and narrated in the actual policy adopted by the NSE on this CCM. The fact that loss is transferred to Client No 31 is to the benefit of the assessee, there is some amount of responsibility on his part to do in the interest of the justice. Assessee being the beneficiary of the impugned loss and the claimer of the deduction by way of set off against the other income, or the Broker, who is party to such generation of loss, needs to demonstrate on what basis the client Codes No.SJ17 and M032 are similar to that of the assessee. Are the names are similar? Are these three clients are part of the assessee's family? How the SJ17 or MO32 are akin to MO 31? These are the logical questions which are required to be answered by the claimer of the deduction or generator of the impugned losses. Therefore, basis facts relating to peculiar issues enlisted above, are essentially required for meaningful adjudication of the ground raised before us. Thus, in the interest of the justice, we set aside the order of the CIT(A) and restore the issue to the files of the AO for fresh adjudication after completing the enquiries initiated in the regular assessment proceedings. AO shall grant reasonable opportunity of being heard to the assessee. Accordingly, the solitary ground raised by the assessee is set aside.
|