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Premium Linkers Ltd. Versus ITO, Ward-14 (3) , New Delhi

2017 (10) TMI 316 - ITAT DELHI

Addition on account of loss in trading of shares - Assessment u/s 144 - plea of the assessee that it may be provided adequate opportunity to present its case - Held that:- It is evident from the assessment order that the addition on account of loss in trading of shares was made in absence of any details. Before the Ld. CIT (A) also, the assessee could not furnish relevant details like the basis of valuation of shares, the date of purchase of shares and the working of the loss said to have been i .....

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returned income of ₹ 4,984/-, we deem it fit to restore the issue to the file of the AO for fresh adjudication after giving the assessee a proper opportunity. We also direct the assessee to fully co-operate with the AO in the assessment proceedings - ITA No. 2252/Del/2010 And ITA NO 1826/DEL/2014 - Dated:- 4-10-2017 - SHRI G.D.AGRAWAL, HON BLE PRESIDENT AND SHRI SUDHANSHU SRIVASATAVA, JUDICIAL MEMBER For The Appellant : Sh. K. Sampath, Adv. For The Respondent : Sh. Atiq Ahmad, Sr.DR ORDER .....

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ficer. 1. In completing assessment u/s 144 of the Income Tax Act, 1961 without allowing reasonable, adequate and proper opportunity of hearing. 2. In disallowing loss on sale of snares in a sum of ₹ 1,62,40,000/- incurred in the normal course of business. The above actions of the Ld. CIT(A) are most arbitrary, erroneous and untenable and it is prayed that such actions must be quashed. 2. The appeal was earlier dismissed on 25.10.2011 as nobody was present and Tribunal had dismissed the app .....

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sing Officer disallowed an amount of Rs.l,62,40,000/- as loss claimed by the assessee on sale of shares. The Assessing Officer had issued various notices for compliance but nobody appeared. Therefore, on 24.10.2008 a final questionnaire was issued and the assessee filed reply on dated 7.11.2008 and the hearing was then adjourned for 27.11.2008 on which date no compliance was made. Therefore, the Assessing Officer issued a final show cause notice dated 4th December, 2008 wherein various observati .....

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he has affixed the show cause notice along with notice u/s 142(1) at the address of the assessee i.e. 102, Palco House, 2162/T-10, Main Patel Road, New Delhi - 110008. Since the proceedings are barred by limitation and the assessee is not attending the office in spite of more than sufficient opportunity allowed to him, I am left with no other alternative but to decide the case on merits on the basis of material available on record and as proposed in the show cause notice dated 4.12.2008. In the .....

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sitting there and they cannot make any transaction of receipt and clearing. The transaction made through the bank has no evidence of genuineness. The assessee could not give any supporting documentary evidence in respect of these transactions in spite of more than sufficient opportunity allowed to him. Accordingly, an amount of ₹ 1,62,40,000/- is added to the income declared by the assessee as proposed in the show cause notice dated 4.12.2008 and penalty proceedings u/s 271(1)( c) are bein .....

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reproduced below:- I have carefully considered the submission made by the appellant and perused the assessment order passed by the Assessing Officer. It is seen that the appellant had earned profit of ₹ 1,63,35,766/- on the sale of shares of M/s IKF Technologies Ltd. The appellant has submitted the evidence in respect of the transaction in the shares of M/s IKF Technologies Ltd. That transaction was carried out through a recognized broker and on the recognized stock exchange. The AR has su .....

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not traded in the futures and options (F&O) segment. Therefore, the only possibility is through taking the delivery. It is an admitted fact that Vinayak Local Area Bank is a tainted entity which has been banned by the Govt. from undertaking any transaction. It is also an admitted fact that the director of the appellant company Mr. Prakash Chand Goyal is promoter of this tainted entity/bank. Thus the appellant was in a position to obtain whatever confirmation they wanted from the above taint .....

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of the so called shares of the other companies. Even basic information in respect of above transaction was not submitted by the appellant. The appellant could not provide any evidence for payment of brokerage on the above transaction and payment of securities transaction tax and service tax in respect of above transaction. No evidence whatsoever was produced which could prove the genuineness of the transaction in respect of which loss of ₹ 1,62,40,000/- has been claimed. Thus it is evident .....

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At the outset, the Ld AR submitted that Left remarks as contained in the order of assessment are wrong and assessee was not provided sufficient and reasonable opportunity and it will be in the interest of justice if the appeal is remitted back to the office of Assessing Officer for re-adjudication. He further submitted that even Ld CIT (A) did not provide adequate and proper opportunity. 7. The Ld. DR, on the other hand, submitted that sufficient notices were issued even then the assessee did n .....

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yer of the Ld AR to send back the case to the Assessing Officer was only to buy time and should not be accepted. 8. We have heard the rival submissions and have perused the relevant material on record. The fact that the assessment was completed u/s 144 of the Act is undisputed. The only plea of the assessee is that it may be provided adequate opportunity to present its case. It is evident from the assessment order that the addition of ₹ 1,62,400/- on account of loss in trading of shares wa .....

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