9911796707
TMI Blog2022 (12) TMI 217X X X X Extracts X X X X X X X X Extracts X X X X ..... for Rs.3,72,718/- and confirming the addition by the Ld. CIT (A)-20 is against the facts and circumstances of the case and is uncalled for and unjustified. Also, the Ld. CIT (A)-20 in merely one hearing after listening to the arguments of the counsel of the appellant, without responding to the arguments, not asking questions/ making queries passed the order. 2. THAT since it's an order passed on account of notice issued to the assessee u/s 143(2) of the Act, therefore passing an order u/s 144 of the Act is unjustified, since the assessee doesn't fall under provisions of sub section 3 of section 144 where it is crystal clearly envisaged as, 144(3) When an assessee after filing a return fails to comply with the terms of a notice as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... currency pair after the markets open and close the position before the markets close on the same day. With interday trading, you keep trading positions open at least through the Close of the markets and overnight". 5. The Ld. AO has grossly erred in making the addition @ 5% of Rs. 1,21,62,142/-, over presumption of "Inter-day" trading. On one hand, the Ld. AO has appreciated and given due credit of information regarding derivatives and losses of Rs. - 2,35,389/- and on the other hand, he has made an addition @ 5% on the basis of Inter-day sales. It is to be observed that there cannot be any addition on the basis of an ad-hoc percentage. There is no scientific basis or any method to help in assuming and estimating the percentage. Thus, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s towards the assessee. All the trading done during the year is 'intra-day'. Also, the assessee is not liable to audit because he has incurred loss of Rs.2,35,389/-. Neither the Ld. AO nor the Ld. CIT(A)- 20 consider the facts of the case before passing the impugned assessment and appellate orders respectively. 7. THAT no Show cause notice was issued during the assessment proceedings by the Ld. AO to the assessee before making the addition and passing the impugned assessment order. The fact was laid down in the grounds of appeal vide form- 35 before the Ld. CIT(A)-20 but were not considered while passing the appellate order." 3. Brief facts of the case are that, the return of income declaring income of Rs. 77,66,460/-was filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tunities to produce information regarding turnover/sales of the shares, but even after availing the opportunities the AR of the Assessee has show inability to produce the details of the share transaction, therefore the Ld. A.O. has rightly passed order u/s 144 of the Act. 8. We have heard the parties, perused the material on record and gave our thoughtful consideration. It is not in dispute that the representative of the assessee has participated in the assessment proceedings and the assessment order has been passed u/s 144 of the Act. The moot question is that in what circumstances the Assessing Officer can pass Best Judgment Assessment u/s 144 of the Act?. For the ready reference the Section 144 of the Act is reproduced hereunder:- "14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 1988 ), shall apply to and in relation to any assessment for the assessment year commencing on the 1st day of April, 1988 , or any earlier assessment year and references in this section to the other provisions of this Act shall be construed as references to those provisions as for the time being in force and applicable to the relevant assessment year.] 9. In the present case on hand, the Ld. Assessing Officer has issued notice u/s 142(1) of the Act and the representative of the assessee had filed written reply and again filed part replies but did not produced the information regarding the share turnover/sales. The Ld. A.O. has asked the assessee to file remaining information/details on 02/11/2018. On 02/11/2018, again a part reply has ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
