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TMI Blog2012 (6) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... ed its return of income for A.Y. 2008-09 on 22.9.2008 declaring income of Rs. 23,54,362/-. The case was taken up for scrutiny. The assessee is a non resident corporate entity registered with Securities & Exchange Board of India (SEBI) as a sub account under the FII, AXA World-Funds for carrying out investment activity in Indian capital markets. (ii) In the return of income, the assessee has shown both long term & short term capital gains on sale of securities, and dividend income. (iii) The AO found from the data base of the department (AIR data) received from Bombay Stock Exchange and the Brokers that the assessee has entered into various share trading transactions during the F.Y. 2007-08. The same is extracted and copy given to the assessee during the scrutiny of the case with a request to reconcile the same with the return of income, its statements of income filed and as to how the transactions shown in the AIR data are reflected into its accounts. (iv) The AO has furnished a soft copy of the Data in MS Excel Format, and also details like the date of trade, trade time, scrip code, scrip name, trade No. & value, trade quantity, trade rate, buy/sell order No. broker code, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arded the same to the assessing officer calling for specific comments and report. The DRP after considering the remand report of the AO and the assessee's submissions, has observed as under (pages 8 and 9 of Directions u/s 144C(5) dated 23.9.2011): "7.1. The DRP has considered the facts of the case, AO's observations and findings, assessee's objections and submissions thereof and the remand report of the AO. DRP's findings and directions on the issue are as under: (i) The assessee in spite of sufficient opportunities given by the DRP and again by the AO during the remand proceedings was unable to reconcile the AIR data reflecting the transactions of purchase and sale of scrips in its name, made on NSE/BSE, with the return of income and supporting documents filed. The assessee should have furnished the data (provided by the AO), to its broker in respect of such transactions which are not appearing in the books of accounts or electronic contract notes, seeking clarifications and reasons for such transactions being reflected in its accounts with the broker. The assessee has made no efforts in that direction at any time. When authentic data is provided with full details i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee by AO continue to remain so even now. (vi) The AO reported in his remand report dated 22.9.2011 that in spite of further opportunities given, the assessee is unable to obtain confirmation from its brokers (DSP Merrill Lynch Limited and Citi Group Global Markets India Pvt. Ltd.) to show that the trades/transactions which are considered by AO as unexplained investment in fact do not belong to the assessee and belong to other clients and explain the reason that led to present situation. (vii) As the assessee has neither submitted the reconciliation of the transactions/trades which are considered as unexplained investment by AO in the assessment order, nor reconciliation is found possible from the data and details submitted by assessee before the AO & DRP, DRP is of the view that no interference as such is called for in the addition proposed by AO of Rs.16,51,49,573/- treating the unreconciled transactions as unexplained investments u/s.69 of the Act......." The DRP while rejecting the objections raised by the assessee directed the AO to verify the claim of the assessee with regard to the levy of interest u/s 234A, 234B as per law. Accordingly, the AO passed the impugned ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIB report were allocated and thus, has been able to reconcile the unconcealed transactions which had been treated as unexplained investment by the AO. In the light of the above, he submits that the said additional evidence appearing at pages 1 to 93 of the assessee's paper book may be admitted under Rule 29 of the Income Tax (Appellate Tribunal) Rules, 1963. He further submits that in view of the above the additional evidence filed before the Tribunal he has no objection, if the issue is set aside to the file of the AO to examine and consider the same which was not objected to by the ld. DR. 6. We have carefully considered the submissions of the rival parties and perused the material available on record. We find that there is no dispute that during the assessment proceedings or the proceedings before the DRP the assessee has not filed any reconciliation of the transactions despite sufficient opportunity was provided to the assessee. However, before the Tribunal, the assessee has filed such details appearing at pages 1 to 93 of the assessee's paper book along with the application under Rule 29 of the Income Tax (Appellate Tribunal) Rules, 1963, seeking permission to file additiona ..... X X X X Extracts X X X X X X X X Extracts X X X X
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