Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (8) TMI 1892 - HC - Income TaxClient code shifting - Shifting of income by client code modification - Profit shifting an exercise carried out by the assessee which used to trade in stocks and securities, with trading members - AO citing a SEBI circular of 29.07.2011, and after examining several instances held that the shifting was contrary to the guidelines inasmuch as there was no similarity, in the nature of transactions or the parties, involved with client code - assessee’s appeal was allowed on both the questions of reopening of assessment as well as on the merits - ITAT took into account the submissions of revenue, specially the effect of the circular dated 29.07.2011 and also significantly observed that neither was survey conducted u/s 133(6) by the AO despite the specific request of the assessee nor was any notice u/s 131 issued in respect of transactions which led to the shifting of profits - HELD THAT:- Counsel stressed that the SEBI circular, is decisive and that the shifting of client code was in respect of suspect parties. It is not disputed by the Revenue that pursuant to the so called violation of the SEBI circular, further investigation or enquiry was not carried out by the AO before concluding that the amounts claimed as shifting of profits, were in fact dubious and had to be added back in the manner that the AO actually did. Furthermore, the findings of the CIT (A) have been confirmed by the ITAT; consequently, the Court is now called upon to examine and appreciate concurrent factual findings. No substantial question of law arises.
|