9911796707
TMI Blog2018 (3) TMI 378X X X X Extracts X X X X X X X X Extracts X X X X ..... 143(3) of the Income Tax Act, 1961 (in short "the Act") dated 02.02.2015 for the Assessment Year 2012-13. 2. The only issue to be decided in this appeal of the revenue is as to whether the ld CITA was justified in directing the ld AO to take the value of opening stock at Rs. 5,91,73,606/- instead of Rs. 4,16,12,081/- in the facts and circumstances of the case. 3. The brief facts of this issue is that the assessee is an individual engaged in the business of share dealing. The return of income for the Asst Year 2012-13 was filed by the assessee on 12.11.2012 declaring total income of Rs. 5,67,808/-. The assessee derived rental income from a house property located at Flat 2C, Diamond Heights, 20/1, Chetla Road, P.S.Chetla, Kolkata - 700027. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee had treated STCG of Rs. 64,44,808.68 as LTCG in the return of income. He also found that the closing stock of shares shown by the assessee was Rs. 3,10,28,404.62 as against that shown by the broker at Rs. 3,28,23,785.50 thereby leading to a difference of Rs. 17,95,381.50, which was added by the ld AO as unexplained investment. Besides this, the ld AO added the value of Rs. 13,83,500/- to the total income , being the holding of 10000 scrips of Nifty April 12 having value of Rs. 13,83,500/-. The ld AO observed that the entire funding of purchase of shares, derivatives and futures were conducted by taking loan from HDFC Bank and pledging the shares to HDFC. The assessee had sold majority of shares before the record date of dividend and a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... produce the relevant details. The AO called for the information u/s 133(6) from the broker and on the basis of information so obtained the AO found that the appellant had total purchases in the relevant financial year for intraday and delivery transactions of Rs. 117,20,05,213/- and the corresponding Sales of Rs. 120,60,96,443/-. The AO has observed that the purchase and sale of these shares were more of adventure in nature of trade rather than investment. The AO has further increased the value of the closing stock by the value shown by the share broker in his books; the net addition on this point was Rs. 17,95,381/-. The AO has further added Rs. 13,83,500/- as the stock of NIFTY shown in the balance sheet but not shown by the broker. Addit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne as per the method adopted consistently by the appellant. The value of the shares in the books of accounts of broker is of no relevance as long as the quantity is same. 4.2. Similarly, the addition of Rs. 13,83,500/- as the value of stock of NIFTY shown in the balance sheet of the appellant but not informed u/s 133(6) by the broker is without any basis. The appellant has submitted that the broker does not show the contract of sale/purchase of the scrips which are not settled through actual delivery. 4.3. After considering all the these issues the AO is directed to compute the income as under: 4.3.1 Income from House Property (as per assessment order) Rs. 3,10,318/-. 4.3.2. Income from Business (as per assessment order) a. P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... That the above ground of appeal would be argued in detail at the time of hearing and the appellant crave leave to submit additional grounds of appeal, if any, at or before the time of hearing and/or alter, modify, reframe any grounds of appeal at or before the time of hearing. 5. We have heard the rival submissions. At the outset, the ld DR was not able to point out what were the evidences and documents that were filed by the assessee before the ld CITA so as to seek an opportunity for the ld AO and alleging violation of provisions of Rule 46A of the Rules. The ld CITA had actually recomputed the entire gains as business income without any bifurcation of gains into business or capital gains, by actually enhancing the income of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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