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2017 (6) TMI 1211 - AT - Income TaxTreating the loss in the transactions of derivatives as bogus loss - modification carried out in the name and code of the assessee by the broker - Held that:- Indeed the client’s code and name were modified in respect of transactions claimed by assessee. However, on perusal of record, we find that the impugned transactions were carried out through banking channel and all the supporting evidence such as contract note, payment of STT were filed at the time of assessment proceedings. We also find that Ld. CIT(A) confirmed the order of AO on the basis of his guess-work as saying - “there is a possibility that the modifications might have been made to accommodate the appellant as the broker of the appellant was a sister concern". CIT(A) has confirmed the order of AO on his own surmise and conjecture which is not permissible in the eyes of law. Ld. DR has also not brought anything on record contrary to the advance arguments placed by Ld. AR for the assessee as well as no defects of whatsoever has been pointed out in the documents produced by assessee in support of its impugned loss. We also find whatever modifications were carried out by the broker they were carried out within the time permitted by the NSE for the purpose of modification. Thus we hold that the impugned loss claimed by assessee is genuine loss and allowable deduction - Decided in favour of assessee.
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