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2015 (4) TMI 539 - ITAT AHMEDABAD

2015 (4) TMI 539 - ITAT AHMEDABAD - [2015] 40 ITR (Trib) 64 (ITAT [Ahm]) - Suppression of profit - client code modification by the brokers in a large number of commodity transactions - CIT(A) deleted the addition - Held that:- All transactions at the Commodities Exchanges have been duly accounted in the books of account maintained by the concerned parties. Such profits/loss has been duly accounted whenever the transactions have been closed. Thus, whatever profits have been generated or accountin .....

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is of mere presumption or suspicion. It is not the case of the Revenue that such alleged profit has actually been received by the assessee. In view of the totality of the above facts, we do not find any justification to interfere with the order of the CIT(A) in this regard and the same is sustained - Decided against revenue.

Addition in respect of the income disclosed by the assessee at the time of search - Held that:- In the case of Kailashben Manharlal Chokshi (2008 (9) TMI 525 - GU .....

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s expressed by their Lordships of Hon'ble Jurisdictional High Court in the case of Radhe Associates (2013 (8) TMI 247 - GUJARAT HIGH COURT), wherein the Assessing Officer has made the addition by mentioning that there were clinching documentary evidences with respect to receipt of on-money. However, these clinching documentary evidences were not specified. In the case under appeal before us also, we find that the officer recording the statement of Shri Nayan Thakkar has mentioned that various de .....

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arat, JM,JJ. For the Appellant : Shri Subhash Bains, CIT-DR For the Respondent : Shri S N Soparkar, AR ORDER Per Bench: This bunch of appeals by the Revenue and Cross-objections by different assessees have been filed against the separate orders of learned CIT(A)-I, Ahmedabad. Since these appeals & Cross-objections involve common issues, these were heard together and are being disposed of by this consolidated order for the sake of convenience. IT(SS)A No.615/Ahd/2010 : AY 2005-06 (by Revenue) .....

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IT(A) has erred in law and on facts in holding that the AO was not justified in invoking the provisions of Section 145(3) of the Act. 4. On the facts and in the circumstances of the case and in law, the CIT(A) ought to have upheld the order of the A.O. 5. It is, therefore, prayed that the order of the CIT(A) be set aside and that of the A.O. be restored to the above extent." 3. The facts of the case are that the assessee-company is engaged in the business of share trading; F&O transacti .....

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sessment order, the Assessing Officer has stated that during the course of search various books of account and documents as per Annexures A1 to A65 of the Panchnama were seized from the main office premises of this group and surveys were also carried out in the companies of this group. Searches were simultaneously carried out at the residential premises of the directors Shri Nayan Thakkar, Shri Kunal Shah and Smt. Rujuta Sheth and their statements were recorded. During the course of assessment p .....

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e opinion that the assessee-company and KCBPL are the group concerns and since there was unusually high number of client code modifications in the case of the assessee, he was of the opinion that the client code modification was not the bona fide mistake but it was done with the intention of transferring the profit from one client to another. He, therefore, worked out the notional profit/loss which could have been occurred to the assessee had the client code was not modified. As per his working, .....

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ient code modifications were deliberately and mala fide carried out with a view to transfer the profits so as to reduce the incidence of tax in the case of Kunwarji Group. I have also considered the detailed submissions made before me on behalf of the appellant Company and have also gone through the various judicial pronouncements cited before me. At the very outset, it may be stated that the huge additions made by the Assessing Officer in the assessment years under appeal on the basis of client .....

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e Assessing Officer has drawn his own inferences from the client code modifications. Further, the additions made by the Assessing Officer are on the basis of certain assumptions. The main basis of the Assessing Officer for making the additions is that large number of client code modifications were carried out by KCBPL and such modifications during the four Assessment Years under appeal come to 36,161. The assessee explained to the Assessing Officer as also before me that the total trades conduct .....

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directly by the traders come to 45% of such modifications, which means that the percentage of modifications carried out by KCBPL would be around 0.5%. It was further explained with supporting evidence that one trading order normally comprises of more than one trade, which would further reduce the percentage of modifications to a negligent figure. This point has been explained at page-35 of the Statement of Facts with reference to transactions at MCX. The total number of trades in MCX is 26,69,1 .....

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ch modifications are more than 1% but less than or equal to 5%, nominal penalty of ₹ 500 is leviable. In the present case, if all the facts are objectively analysed, it is seen that effectively the client code modifications can be said to be around 0.5% for the Assessment Years under appeal. Therefore, I see no justification in the assumption of the Assessing Officer that large numbers of client code modifications were carried out. For the same reason, there is hardly any basis for the ass .....

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efore the Assessing Officer as also before me. The assessee's explanation has been summarised under six points at pages - 42 to 43 of the Statement of Facts. These reasons are convincing and obviously, the client code modifications have been carried out to rectify genuine punching errors. If such genuine errors are not rectified, and the transactions allowed to continue in the name of wrong clients, it would result into a chaotic situation. Therefore, I see no merit in the conclusion drawn b .....

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assumption that the open position in all contracts to buy or sell are squared off at the expiry prices of the contract. In other words, the Assessing Officer assumed that the transactions would be finalised at the expiry date and accordingly, he calculated the assumed profit on the basis of the prices .of the commodity prevailing at the expiry date. Apparently this is a hypothetical exercise. (ii) The Assessing Officer completely ignored the correct factual position that the client code modific .....

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prices can be adopted for calculating the so called suppressed profits. (iv) The trading parties could not have been aware of the expiry price and therefore, no motive can be imputed that the modifications were carried out with a view to avoid tax. There is no material whatsoever to support the conclusion drawn by the Assessing Officer that client code modifications were carried out mala fide with a view to transfer profits. Such assumption is totally illogical for the simple reason that even i .....

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g Officer for calculating notional and hypothetical profits gives rise to several crucial questions which remain unanswered and this point was thoroughly explained by the . assessee at-pages -14 to 19 of the reply dated 23rd November, 2009 filed before the Assessing Officer. These anomalies in the presumptions of the Assessing Officer have also been explained at pages - 45 to 50 of the Statement of Facts. 4.13 Another factor which cannot be ignored is that all transactions at the Commodities Exc .....

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he assessee as enumerated at pages 57 to 66 of the Statement of Facts which have been reproduced supra. 4.14 Considering the entire facts and the legal position, I have no hesitation in holding that the additions made by the Assessing Officer in the four Assessment Years under appeal on account of client code modifications are without any basis and accordingly these additions are deleted." 4. The Revenue, aggrieved with the order of the ld. CIT(A), is in appeal before us. 5. At the time of .....

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modified by the broker i.e. KCBPL with the malafide intention to help the assessee to suppress the profit. He stated that the Assessing Officer has discussed all the facts in details and the ld. CIT(A) has not considered these facts correctly. The modifications of the client code were unusually high numbers and there cannot be bonafide mistake in thousands of cases. He further submitted that this is a search case and during the course of search, Shri Nayan Thakkar has disclosed the income of  .....

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ering the totality of the facts, the addition made by the Assessing Officer deserves to be sustained and therefore, the order of the ld. CIT(A) should be reversed and that of the Assessing Officer may be restored. 6. The ld. Counsel for the assessee, on the other hand, relied upon the order of the CIT(A). He submitted that the client code modifications were not unusually very high as alleged by the Assessing Officer. He referred to the total number of trades in both the Exchanges and the number .....

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sactions, it would be clear that the total number of trade transactions were more than 38 lacs and the percentage of the client code modifications with reference to total number of trade was less than 1% i.e. 0.94%. He referred to the Circular issued by MCX and pointed out that the client code modification upto 1% is permitted by the MCX and if there is client code modification greater than 1% but less than 5%, then penalty of ₹ 500/- is levied and if it is between 5-10%, then penalty of & .....

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client code on the same day. He referred to the time of the client code modification and pointed out that the client code modification is usually done within few minutes and in any case before the end of the day. He submitted that the presumption of the Assessing Officer that the client code modifications were done with the malafide intention of suppressing the profit could have some basis had the client code modification done after a considerable gap of time between the entering of the transact .....

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rect. In support of this contention, he relied upon the decision of ITAT, Ahmedabad Bench in the case of ACIT vs. Hina Nitin Parikh, reported in [2013] 144 ITD 157 (Ahmedabad - Trib.). He also submitted that the above decision of the ITAT, Ahmedabad Bench is upheld by the Jurisdictional High Court which is reported in [2014] 43 taxmann.com 317 (Gujarat), in the case of CIT vs. Prudent Finance (P.) Ltd. He, therefore, submitted that the order of the CIT(A) should be sustained. 7. With reference t .....

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ee found that there was not a single defect or discrepancy in the books of accounts; therefore, no income was offered in the Return of Income. He further submitted that there is a separate ground raised by the Revenue with regard to disclosure of income by the assessee at the time of search and therefore, he will be making his submissions in details while ground No.2 of the Revenue's appeal could be considered. But, so far as the addition made on account of alleged suppression of income by w .....

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on was for unusually high number of cases. Therefore, first thing to be decided is whether there was the client code modification for unusually high number of cases. The Commodity Exchange i.e. MCX vide circular No.MCX/T&S/032/2007 dated 22.01.2007, issued guidelines with regard to the client code modification, which reads as under:- "Circular no. MCX/T&S/032/2007 January 22, 2007 Client Code Modifications In terms of provisions of the Rules, Bye-Laws and Business Rules of the Excha .....

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rading days from Mondays to Fridays and on Saturdays the same shall be allowed between 2:00 p.m. to 2:15 p.m. c. However, on the days when trading in commodities takes place till 11:55 p.m. the client code modification will be allowed only upto 12:00 p.m. d. At all times, Proprietary trades shall not be allowed to be modified as client trades and client trades shall not be allowed to be modified as proprietary trades. e. In order to ensure that client codes are entered with alertness and care, a .....

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ty will be completely stopped. With reference to point C. as referred above, Members may please note that the client code modifications will be allowed only upto 11:55 p.m. in international referenceable commodities (i.e. commodities traded upto 11:55 p.m.) Members are requested to take note of the FMC directives and ensure strict compliance." From the above, it is evident that client code modification is permitted intra-day, i.e. on the same day. As per Commodity Exchange, if client code m .....

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enalty. Even client code modification upto 5% is not considered unusually high because that is also permitted with the token penalty of ₹ 500/-. In the context of the circular issued by Commodity Exchange, let us examine whether the client code modification done by the broker i.e. KCBPL is unusually high. At page No.16 on paragraph No.4.3, the CIT(A) has given the number of transactions entered into by the assessee for the period 2004-05 to 2007-08 and the number of client code modificatio .....

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of the total trading transactions. As per circular of Commodity Exchange, client code modification upto 1% is quite normal and is permitted without any penalty. That the Assessing Officer has not given any reason on what basis he presumed the client code modifications to be unusually high. In the light of the MCX circular, we are of the opinion that the client code modification was quite nominal and not unusually high as alleged by the Assessing Officer. 9. The Assessing Officer held the client .....

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nnot be any malafide intention. Had client modification done after the transactions period when the price of the commodity has already changed, then perhaps there could have been some basis to presume that client code modification is intentional. However, when the client code modification is done on the same day, in our opinion, there was no basis or justification to hold the same to be malafide. 10. Moreover, the ld. Assessing Officer has computed the notional profit/loss till the transactions .....

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ecorded the findings that "all transactions at the Commodities Exchanges have been duly accounted in the books of account maintained by the concerned parties. Such profits/loss has been duly accounted whenever the transactions have been closed. Thus, whatever profits have been generated or accounting of actual trade, have been offered and brought to the charge of tax in the cases of concerned assessees." These findings of fact recorded by the ld. CIT(A) has not been controverted by the .....

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not find any justification to interfere with the order of the CIT(A) in this regard and the same is sustained; and Ground Nos. 1 and 3 of the Revenue's appeal are rejected. 12. Ground No.2 of the Revenue's appeal is with regard to the claim of the Revenue that the CIT(A) ought to have directed for the addition in respect of the income disclosed by the assessee at the time of search. 13. It is submitted by the ld. Departmental Representative that during the course of search, statement of .....

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,00,000" Thus, in clear terms, he disclosed sum of ₹ 8 Crores as unaccounted income of the assessee. This letter dated 10.04.2008 was filed after the conclusion of the search. That till the filing of the Return of Income, the disclosure made at the time of search was not retracted. However, in the Return of Income, the undisclosed income declared at the time of search was not offered; therefore, the addition for undisclosed income declared at the time of search ought to have been sust .....

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me of search. He, therefore, submitted that if the ITAT sustain the addition for client code modification, then no addition on account of undisclosed income declared by the assessee at the time of search would be called for; otherwise the ITAT should sustain the addition of ₹ 8 crores which was voluntarily declared by Shri Nayan Thakkar at the time of search without any pressure or coercion from the Department. In support of this contention, he relied upon the following decisions:- (i) Ram .....

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kar was physically and mentally perturbed. The authorized officer who recorded his statement has told him that the various papers and documents seized from their office premises as per Annexure-1 indicated various defects and discrepancies. He was asked to explain the same without giving the copy of such Annexure-1. In that background, he offered some additional income. However, during the course of assessment proceedings, the assessee vide letter dated 27.03.2009 requested for supplying of the .....

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nts, the assessee did not offer any undisclosed income. From these facts, it is evident that disclosure made by the assessee at the time of search was erroneous, based upon incorrect facts conveyed by the authorized officer who was recorded his statement. He, therefore, submitted that the order of the CIT(A) is fully justified and the same should be sustained. In support of this contention, he relied upon the following decisions:- (i) Kailashben Manharlal Chokshi vs. CIT : (2010) 328 ITR 411 (Gu .....

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up. During the course of search, statement of Shri Nayan Thakkar, who is Director of the assesseecompany, was recorded in which he admitted unaccounted income of ₹ 12 crores in the case of group concerns. On 10th April 2008, he filed a letter addressed to Assistant Director of Income-tax in which he reiterated the undisclosed income of ₹ 12 crores and in the break-up, offered income of ₹ 8 crores in the hands of the assessee and balance ₹ 4 crores in the hands of individu .....

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d not made any addition in respect of income disclosed at the time of search. The relevant finding of the Assessing Officer reads as under:- "In view of the above, the claims made by the assessee in his affidavit and submissions made during the course of assessment proceedings are not acceptable and it is hereby rejected. However, since the total suppression of profits, which reflects the irregularities in the business affairs of the company and discrepancy in income, and worked out for dif .....

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ts having bearing on this issue and the submissions made on behalf of the appellant Company. There is no dispute that during the course of search Shri Nayan Thakkar disclosed income of ₹ 1.2 crore and this disclosure was subsequently confirmed by filing a letter wherein the amount of disclosure was also bifurcated. However, all the relevant facts which have been brought to my notice in the Statement of Facts and also during the course of the hearing show that when the statement of Shri Nay .....

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hours and the statement of Shri Nayan Thakkar was commenced at about 11 O'clock in the night and continued upto 5.00 AM next day. I have also observed that at the time of recording the statement u/s 132(4), the Departmental authorities referred to Annexure-I, which was made the basis of disclosure. However, there seemed to be lack of clarity and uncertainty with respect to 'Annexure-A'. Subsequently, it was informed to the assessee that the said Annexure-l should be construed as Anne .....

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llowed adequate opportunity to inspect and go through the voluminous seized records and even the copy of the statement recorded on 25/26th March 2008 was given to the appellant Company on 20th March, 2009 after one year of the search. Moreover, I have also verified the content of the letter dated 10-04-2008, addressed by Shri Nayan Thakkar to the Asst. Director of Income-tax. In the said letter, he has clearly stated that he was allowed inspection of seized material only for about 3 ½ hou .....

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9. During the course of entire assessment proceedings, the Assessing Officer has been unable to refer to any seized material, on the basis of which unaccounted income could be proved or established. It proves that whatever additions have been made by the Assessing Officer are not based upon any seized documents and the same have been made on the basis of various data collected by the Department from Commodity Exchanges which reflected client code modifications. 3.7 From the above referred .lette .....

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he first three aspects. It is also an admitted fact that the code modification details were not available and not confronted at the time of search. Code modification details were obtained by the Department from the Commodity Exchanges in post search inquiries and no such details were confronted at the time of search operations and accordingly, the basis of the disclosure did not exist. So far as the first three aspects are concerned, even the Assessing Officer has admitted that there is no such .....

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rse of search should also simultaneously be reflected in some valuables, assets or expenditure. In the assessment order, the Assessing Officer has not made any specific addition on account of statement recorded u/s.132(4) of the I.T. Act. In spite of exhaustive inquiries at the time of search and during the post search inquires and also at the time of assessment proceedings no undisclosed assets or expenditure were ever found out or referred to which can correspond to the alleged undisclosed inc .....

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he case of Rameschandra & Co. vs. CIT, (1988) 168 ITR 375 (Bom.). In the said case, during the course of assessment proceedings, the Assessing Officer came across the discrepancy in "Sarki" account. He asked the assessee for explanation. In response, the assessee filed a letter submitting that the discrepancy could not be explained and value thereof could be added to the firm's income. Thereafter, the Assessing Officer made the addition of ₹ 18,052/-. The assessee filed a .....

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2, the Hon'ble Allahabad High Court has held as under:- "that a statement made voluntarily by the assessee could form the basis of assessment. The mere fact that the assessee retracted the statement could not make the statement unacceptable. The burden lay on the assessee to establish that the admission made in the statement at the time of survey was wrong and in fact there was no additional income. Thus burden was not even attempted to be discharged. The order of the Tribunal was based .....

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the undisclosed income of the assessee. All the authorities below had found that there was a contradiction between the statement recorded on oath of U and the subsequent affidavit filed by him. A perusal of the record showed that the affidavit of U filed by the assessee was nothing but an afterthought and just to cover up the undisclosed income. The authorities below after considering the affidavit and statement found that the affidavit did not inspire any confidence. In this view of the matter, .....

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hat the statement of the assessee was recorded under section 132(4) of the Act at midnight. In normal circumstances, it was too much to give any credit to the statement recorded at such odd hours. The person would not be in a position to make any correct or conscious disclosure in a statement if such statement was recorded at such odd hours. The assessee had given proper explanation for all the items under which disclosure was sought to be obtained from the assessee. …" 21. In the ca .....

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the sale deed discloses a sale consideration, it si for the Revenue to show that what was disclosed in the sale deed is not the correct sale consideration. In this case the Revenue could not bring on record any material to show that the assessee had paid on-money of ₹ 23,00,000. The reasons given by the Tribunal were based on valid material. The deletion of addition was justified." 22. In the case of DCIT vs. Ratan Corporation, (2005) 145 Taxman 503 (Guj.), the Hon'ble Jurisdictio .....

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he Act and recorded that the explanation was in contradiction to the notings in the seized document that these relate to Ratan Market Project containing names of shop holders, amount received from them, construction account with show-wise details. It is, thus, apparent that when the Tribunal refers to the duty of the Assessing Officer to make further inquiries in respect of the shop owners, it is in this context. The tribunal has also, as noticed hereinbefore, found that all the seized papers do .....

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he order of assessment passed by the AO. At the outset it is required to be noted that though in the order, the AO had mentioned that there is clinching documentary evidence with respect to receipt of "on-money", the AO has not mentioned as to what were those clinching documentary evidences. By making the aforesaid addition, nowhere it is mentioned by the AO that what was the nature of clinching documentary evidence on the basis of which the AO has come to the conclusion that the asses .....

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rt in the case of K. Bhuvanendran (supra); the decision of the Delhi High Court in the case of Balaji Wire (P.) Ltd. (supra) as well as this Court in the case of CIT v. Maulikkumar K. Shah [2008] 307 ITR 137. 4. Considering the aforesaid facts and circumstances and the reasoning given by the ITAT and the aforesaid three decisions, we see no reason to interfere with the impugned judgment and order passed by the learned ITAT in deleting the addition of ₹ 1,45,37,500/- as unaccounted income a .....

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of the assessee's case. Xerox copy of the statement of Shri Nayan Thakkar is placed at page no.296 onwards of the assessee's paper-book. From the first page of the said statement, it is clear that the statement began on 25th March 2008 at 11.30 pm. Thus, recording of the statement was started at almost midnight of 25th March 2008. From the last page of the statement, it is evident that it was concluded on 26th March 2008. No time was mentioned on the conclusion of the statement. However .....

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jurisdictional High Court would be squarely applicable to the facts of the assessee's case because the statement was recorded at the midnight of 25th and 26th March 2008. 25. The Revenue has heavily relied upon the question No.21 and answer thereto in the statement of Shri Nayan Thakkar, which reads as under:- "Q.21 I am showing you various papers and documents which have been seized from your office premise as per Annexure-1, in which various defects and discrepancies are observed. You .....

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are maintained in my office situated at 310, Shyamak Complex, Ambawadi, Ahmedabad & Kunwarji House, Ambawadi, Ahmedabad. I have also carefully gone through various discrepancies defects pointed out by you. Looking into the various discrepancies as well as unrecorded transactions in my regular books and income, I admit unaccounted income of ₹ 12 crores (Rupees twelve crores) on which, tax works out ₹ 4 crores (Rupees four crores) approximately, which I am ready to pay. This admitt .....

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tains to Kunvarji Commodities Brokers Pvt. Ltd., Kunvarji Finstock Pvt. Ltd., Kunvarji Finance Pvt. Ltd., Kunvarji Commodities Pvt. Ltd." 26. From the above, it is evident that the authorized officer who was recording the statement informed Shri Nayan Thakkar that various papers and documents have been seized from their office which are listed in Annexure-1. From such papers and documents, various discrepancies and defects have been observed. He has also stated about the client mode modific .....

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there was no Annexure-1 at all, and in response to the assessee's letter during the assessment proceedings, the Assessing Officer admitted these facts vide letter dated 27.08.2009 by the Deputy Commissioner of Incometax which reads as under:- "Office of the Dy. Commissioner of Income-tax, Central Circle-1(1), 3fd floor, Aayakar Bhavan, Ashram Road, Ahmedabad - Phone: 079-27546781 No.DCIT/CC1(1)/Ahd/Kunvarji/2009-10 Date: 27.08.2009 To: The Principal Officer Kunvarji Finance Pvl. Ltd. 3 .....

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f statement of Shri Nayan Thakkar recorded in the course of his statement at 310, Shyamak Complex, Ahmedabad on 25 & 26.03.2008. 2. From the plain reading of the statement, it is clear that the Authorised Officer is referring to the documents / paper / electronic media seized as per the list which is an Annexure to the Panchnama. The Annexure-1 referred above pertains to Annexure A, containing pages number 1 to 3 and containing list of 65 items of books / documents / paper electronic media f .....

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ng referred as seized Annexure-1 does not arise at all. Hence, it is clarified that the seized Annexure-1 is nothing but seized Annexure-A. 3. Further, the seized documents had been provided to you on 06.08.2008 as per evidence forwarded by Investigation Wing. Thus claims made by you in your affidavit are without any basis and are factually incorrect. This is for your information and record. Yours faithfully, Sd/- (GAURAV BATHAM) Dy. Commissioner of Income-tax Central Circle 1(1), Ahmedabad" .....

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ation which has also been computed on the basis of information collected from the Commodity Exchange in post search enquiry. The CIT(A) has found the addition on account of client code modification to be untenable and while disposing of ground No.1 of the Revenu's appeal, we have concurred with the findings of the CIT(A). No defects or discrepancies in any of the seized documents have been pointed out by the Assessing Officer in the assessment order or by the ld. DR at the time of hearing be .....

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e stated that after getting the photocopy of the seized documents and their verification with reference to the books of accounts, since no discrepancy was noticed, no undisclosed income was offered in the Return of Income. If there was any discrepancy or defect in the assessee's books of accounts or the seized documents indicating any undisclosed income, the Assessing Officer ought to have mentioned the same in the assessment order. In the case of Kailashben Manharlal Chokshi (supra), the Ho .....

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nquiries. Similar view is expressed by their Lordships of Hon'ble Jurisdictional High Court in the case of Radhe Associates (supra), wherein the Assessing Officer has made the addition by mentioning that there were clinching documentary evidences with respect to receipt of on-money. However, these clinching documentary evidences were not specified. In the case under appeal before us also, we find that the officer recording the statement of Shri Nayan Thakkar has mentioned that various defect .....

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different. Moreover, when there is a decision of Hon'ble Jurisdictional High Court, it would be binding upon the ITAT functioning within the jurisdiction of Gujarat High Court. In view of above, we, respectfully following the decisions of Hon'ble Jurisdictional High Court in the cases of Kailashben Manharlal Chokshi (supra), Ratan Corporation (supra) and Radhe Associates (supra), uphold the order of the CIT(A) and reject ground No.2 of the Revenue's appeal. 28. Ground Nos. 4 & 5 .....

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dismissed. CO Nos. 250 to 253/Ahd/2010 : AY 2005-06 to 2008-09 (by Assessee) 30. At the time of hearing before us, the ld. Counsel did not press the Cross-objections and accordingly, the same are rejected. IT(SS)A Nos. 677 to 680/Ahd/2010 : AY 2005-06 to 2008-09 (by Revenue) 31. In all these appeals, common grounds are raised, and therefore, all these appeals were heard together. 32. Ground Nos. 1 & 3 of the Revenue's appeals in all the years under consideration are with regard to the d .....

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) in this regard. Accordingly, Ground Nos. 1 & 3 of the Revenue's appeals are rejected. 33. Ground No.2 of the Revenue's appeal is with regard to the addition which should have been sustained on account of disclosure of income in the statement recorded at the time of search. This ground is also identical to the Ground No.2 of the Revenue's appeal in the case of M/s. Kunvarji Finance Pvt Ltd. vide IT(SS)A No.615/Ahd/2010 for Assessment Year 2005-06. Therefore, for the detailed dis .....

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ected. IT(SS)A Nos.813 & 814/Ahd/2010 : AY 2006-07 & 2007-08 (by Revenue) 36. The only ground raised in these appeals is against the deletion of the addition made by the Assessing officer on account of client code modification. This ground is identical to Ground Nos. 1 & 3 of the Revenue's appeal in the case of M/s. Kunvarji Finance Pvt Ltd. vide IT(SS)A No.615/Ahd/2010 for Assessment Year 2005-06. Therefore, for the detailed discussion in the case of M/s. Kunvarji Finance Pvt Lt .....

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er on account of client code modification. This ground is identical to Ground Nos. 1 & 3 of the Revenue's appeal in the case of M/s. Kunvarji Finance Pvt Ltd. vide IT(SS)A No.615/Ahd/2010 for Assessment Year 2005-06. Therefore, for the detailed discussion in the case of M/s. Kunvarji Finance Pvt Ltd in IT(SS)A No.615/Ahd/2010 (supra) for Assessment Year 2005-06, we do not find any merit in this ground of appeal and the same is rejected. CO Nos. 344 to 346/Ahd/2010 : AY 2005-06 to 2007-08 .....

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