TMI Blog2023 (12) TMI 1035X X X X Extracts X X X X X X X X Extracts X X X X ..... ,26,178.83/- and has doubted only the transactions through M/s Indianivesh Securities Pvt. Ltd. registered broker that too on DDIT Report. Under these facts, we are not in a position to sustain the order of Ld. CIT(A) which has also discussed DDIT report by SEBI without giving any independent finding on the issue. Accordingly we set aside the order of authorities below and direct the AO to delete the addition.Appeal of the assessee is allowed. - Shri Rajpal Yadav, Vice-President (KZ) And Shri Rajesh Kumar, Accountant Member For the Appellant : Shri Manoj Kataruka, A.R For the Respondent : Shri Arup Chatterjee, Addl. CIT ORDER PER RAJESH KUMAR, AM: This is the appeal preferred by the assessee against the order o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... court in the case of Sumati Dayal vs. CIT [1995] 214 ITR 801 (SC) treated the transactions as non-genuine and disallowed loss of Rs. 56,67,177/- by adding the same to the income of the assessee vide order dated 10.11.2016 passed u/s 147 /143(3) of the Act by rejecting the contentions of the assessee that the transactions were genuine as carried out by the registered broker. Pertinent to state that the assessee is in business of investments and during the year has carried out huge transactions of purchase and sale of shares/securities. 4. The Ld. CIT(A) dismissed the appeal of the assessee by observing and holding as under: 3.3. I have carefully considered the facts of the case and the submissions of the appellant. Information was r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut client code modification. Its submissions on issues of borrowed satisfaction are not relevant. Appellant has not. denied the incidence of client code modification, neither provided any explanation in this regard. On the other hand, SEBI, the Watchdog of the Securities Market, has arrived at the conclusion after thorough enquiry. Hence, the evidence collected by SEBI cannot be brushed aside. Appellant's contention that all the' trades are genuine and executed on stock exchanges, are pot relevant. Transactions are definitely executed on the stock exchanges but after that through manipulation the resultant income/loss is transferred to another client through client code modification. Appellant is silent on the main issue. As appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the recognized stock exchange. In our opinion, investigation into the issue by the AO to justify the said addition towards shifting income through client code modification is not correct as the AO has only relied on the DDIT report without doing any further verification into the allegation. In our opinion when the AO has received any such information from any quarter , he is duty bound to investigate the same further and record a substantive findings and not otherwise. The case of the assessee finds support from the following decisions: i) PCIT,Jaipur vs Gyandeep Khemka in D.B.Income Tax AppealNo.38/2019(Raj) ii) PCIT vs. Pat Commodity Services Pvt. Ltd. in ITA NO. 1257 1383/2016(Bom) iii) Excellent Shares Finance Services (P) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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