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TMI Blog2019 (5) TMI 357X X X X Extracts X X X X X X X X Extracts X X X X ..... e as under : Petitioner is an individual. For the Assessment Year 20162017, the Petitioner had filed return of income declaring total income of Rs. 13.03 Crores (rounded of). In such return, the Petitioner had claimed right off of loss of Rs. 22.28 Crores (rounded of) which was recoverable from one M/s. N. S. Broking Pvt. Ltd., a share-broker through whom the Petitioner had executed certain sale and purchase transactions. The Assessing Officer passed order of assessment under Section 143(3) of the Income Tax Act, 1961 on 29/1/2018 rejecting the claim of set off. This gave rise to tax demand of Rs. 10.35 Crores (rounded of). 4. The Petitioner has filed appeal against the order of assessment. Pending such appeal, he applied to the departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tember 13, 1993 and they continue to be directors in this company as on date. (ii) Mr. Bharat Patel had incurred a reversal loss of Rs. 2.17 cr in his transactions with N. M. Impex Pvt. Ltd. on March 5, 2015. It is also noted that Equitable Financial Consultancy Services Pvt. Ltd., the company in which he holds directorship position, has received funds amounting to Rs. 2.40 crores from N. M. Impex Pvt. Ltd. on 9th March, 2015. Therefore, the losses shown to have been incurred by Mr. Bharat Patel due to his reversal transactions with counterparty Sureshine Vintrade Pvt. Ltd. have been reverted to the account of Equitable Financial Consultancy Services Pvt. Ltd. (iii) Mr. Bharat Pate had incurred a reversal loss of Rs. 8.83 crore in his t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been used to generate fictitious losses arising out of fictitious reversal trades. I note, from the material available on record that the Noticees have not produced significant arguments / submission or documents to migrate the allegations mentioned in the interim order. Thus, the findings in the interim order against Noticees cannot be modified or revoked at this stage." 6. In view of such prima-facie material on record, we do not think that the Petitioner can avoid recovery of tax by offering to pay a mere 20% of the disputed amount. At the same time, recovering entire tax pending appeal would also be harsh. The CBDT circular dated 31/07/2017 gives sufficient discretion to the departmental authorities to govern the situation pe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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