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2018 (12) TMI 450 - AT - Income TaxReopening of assessment - assessment barred by limitation or not - addition of genuine losses by using Client Code Modification - non application of mind and without verification of facts and without connecting the information with the assessee - onus to prove allegations - Held that:- In the process, the Appellant is a beneficiary in whose case the loss has been booked by modifying the client code, thereby, reducing the taxable income. As argued that margin management can be done by broker by usurping funds of clients with it. In this case, loss shifting is not the matter ; it is only the matter of usurping the funds of the Appellant. It is stated that huge voluminous transaction cannot be modified in one hour provided by the Stock Exchange. We are not convinced with the assertion of the Appellant because what required to be modified was only the client code for which limited time is given by the Stock Exchange. Now a days techniques have been evolved to get the data ready before hand for uploading on the site. Another argument by the Appellant is that if he had shifted the profits to an outsider, he would have received back corresponding amount from the recipient of the profit. However, the Assessing Officer has not brought any material on record to show that the profit was received back. This argument of the Appellant can also not be supported because the party receiving the profit, under manipulative schemes, cannot transfer the money either by book entry or by bank transaction. It is only the Assessee who can tell the manner of money received back. Appellant has not given satisfactory explanation with respect to the losses incurred by using Client Code Modification (based on the report received from National Stock Exchange and the inquiry' by the Investigation Wing, Ahmedabad). The grounds of appeal are not substantiated further to prove the allegations leveled by the Appellant. Accordingly, the grounds of appeal are decided against the assessee.
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