Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (10) TMI 1041 - AT - Income TaxReopening of assessment u/s 147 - loss in F&O transaction investigation wing has carried on survey operation under section 133A in the premises of brokers and certain clients - brokers have indulged in misusing the client code modification procedure - HELD THAT:- Addition was made by AO merely on the basis of suspicion, presumptions, surmises and conjectures. The modification in the client code is in the hands of the broker and the assessee cannot be made responsible for the act of others and he also observed that the payments for the losses were made by the assessee to the broker through banking channel and the assessing officer has not disputed the above fact and has also not brought out any evidence of cash coming back to the assessee - all the modifications were made on the same day of the transaction which further substantiates that the same cannot be made with malafied intention. The client code modification can be made on the request of the client or suo moto by the broker before the close of the day. When the broker makes the modification on the behest of the client, as per the BSE procedure, he has to take the request in writing. With regard to suo moto modification it need not. Since the transaction was made through banking channel and settlement was already made for this transaction, that means the transaction must be completed subsequent to the completion of this transaction. So the broker cannot make modification after closure of the trading for the particular day. No factual submission coming from revenue and the addition was made by the assessing officer based on presumptions without any cogent material against the assessee - Decided in favour of assessee.
|