9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (10) TMI 778 - AT - Income TaxReopening of assessment u/s 147 - Claim of fictitious loss which reduced the profit - derivative trading - HELD THAT - It is observed that the assessee company has been booking losses by using Client Code Modification in the year under consideration and the amount as held by the A.O. to be fictitious loss. It is found by the authorities that the script wise details of the derivative trading that the assessee had taken the fictitious loss in order to reduce the profit. The assessee has not produced any material to contradict or disprove the said findings of the A.O. Therefore, CIT(A) has committed no error in confirming the addition made by the A.O., accordingly, we find no merits in the Grounds of Appeal of the assessee which are dismissed.
Issues:
The judgment involves the addition of alleged fictitious loss in derivative trading account u/s 148 and the dismissal of the appeal by the assessee. Issue 1: Addition of fictitious loss in derivative trading account u/s 148 The case involved the assessee declaring a net profit from derivatives while facing an addition of Rs. 48,09,315/- on account of alleged fictitious loss in derivative trading. The assessment was reopened based on information received regarding the fictitious loss from a specific entity. The assessee's reply to the show cause notice was deemed unsatisfactory by the A.O., leading to the addition being made. The Ld. CIT(A) upheld this decision, stating that the appellant had taken the fictitious loss to reduce its profit. The appellant's argument that the amount was a loss as per the notice u/s 148 was dismissed. The tribunal concurred with the authorities, noting that the appellant had not provided any material to contradict the findings. Therefore, the addition made by the A.O. was deemed valid, and the appeal was dismissed. In summary, the judgment addressed the issue of addition of alleged fictitious loss in derivative trading account u/s 148. The case involved the assessee's declaration of a net profit from derivatives, despite facing an addition of Rs. 48,09,315/- due to a suspected fictitious loss. The A.O. and Ld. CIT(A) found that the appellant had taken the fictitious loss to reduce its profit, a decision upheld by the tribunal as the appellant failed to provide evidence to the contrary. The appeal was ultimately dismissed.
|
