TMI Blog2019 (2) TMI 898X X X X Extracts X X X X X X X X Extracts X X X X ..... udit under Section 44AB of the Income Tax Act published by ICAI, but noted that these have not been recognised by the Department, therefore, same are not binding upon the Department. The A.O, however, taken note of the same and applied to some extent for the purpose of computing the turnover of the assessee. The A.O. cannot go in both ways Either A.O. should do his own calculation based upon evidence and material on record to calculate the turnover of assessee for the purpose of making the addition or he should follow guidance note on tax audit published by the ICAI. No other basis have been shown by the A.O. for computing total turnover of the assessee. The A.O. has also not given any finding based on material and evidence on record if ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... During the year and reference, assessee entered into the transactions valued as detailed herein Type Code of Transaction Transaction Valued STT-01 : Purchase of equity share in a recognized stock exchange Rs.70,90,097/- STT-02 : Sale of Equity share (settled by actual delivery of transfer) in a recognized stock exchange Rs.55,13,557/- STT-03 : Sale of Equity share (settled by otherwise than by the actual delivery of transfer) in a recognized stock exchange Rs.10,41,74,893/- Thus transactions valued of ₹ 11,67,78,547/- with STT paid of ₹ 38,640/- has been mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the department, thus, not having binding effect upon the department. However, the notice of the same is being taken and is applied to some extent. The A.O. noted that the term gross receipts for the purpose of turnover has not been defined in the Act. Normally, sales is an integral part of turnover. Sales in general mean purchase plus loss/profit. In the case of share trading, the assessee do the business just applying small amount against large scale purchases just applying margin money. In the present case, assessee made transactions of about ₹ 11.67 crores, against which, assessee has invested fresh capital in purchase ₹ 10 lacs plus absolute value of profit/loss of ₹ 67,82,571/-. The A.O. then determined the turnov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Act. 5. On the other hand, Ld. D.R. relied upon the orders of the authorities below. 6. We have considered the rival submissions. The assessee is a salaried employee. However, the assessee is also engaged in the share trading details of which are noted in the assessment order. The assessee explained that since assessee suffered loss in share trading and never intended to brought forward of set-off purpose, therefore, no loss was declared in the return of income. The assessee further maintained the details of share trading which have been examined by the authorities below and came to the conclusion about total turnover of assessee. The margin money deposited by the assessee with the broker of ₹ 10 lacs was also added i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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