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2017 (3) TMI 1729 - ITAT JAIPURValidity of notice issued u/s 148 - reasons to believe - Held that:- No plausible reason from ld. AR of the assessee that the Department has wrongly invoked the provisions of Section 148 of the Act on the assessee without disposing off the objections. It is noted that the after recording the reasons, the notice u/s 148 was issued on 26-03-2015 and copy of the reasons for reopening of the case was provided to the assessee on 15-04-2015 by the Department. In such a situation, no force in the arguments of the assessee and thus Ground No. 1 of the assessee is dismissed. Suppression of income - assessee was indulged in transferring fictitious profits/loss to the other clients/ beneficiaries by misusing the client code modification facility to the F&O segment and thereby created a loss - Held that:- Circular No. 974 dated 10.09.2009 of the National Securities Clearing Corporation Limited for its Futures & Options Segment (PB 25-26). The stock exchange has also drawn a list of the common violations committed and the applicable penalties (PB 21-24) where it is stated that “if the transfer of trades / errors at the time of order entries are in excess of 2% of the number of orders executed, fine of 0.1% of value of trades transferred is applicable”. It is also noted from the records that the during the year the broker had carried out the broker had carried out 2380 modifications by using CCM facility which is only 0.18% of the total trades carried out by the broker during the year. It is noted that the assessee’s client code was set as default in the system is for the convenience of the broker. The assessee has no control over the system. The client brings to the notice of the broker any mistake/ error in the client code.It may be noted that in the case of ACIT vs. Kunvarji Finance (P) Ltd. [2015 (4) TMI 539 - ITAT AHMEDABAD] had observed that the client code modification is permitted intra day i.e. on the same day. - Decided in favour of assessee.
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