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TMI Blog2016 (9) TMI 1007X X X X Extracts X X X X X X X X Extracts X X X X ..... tional on record, suggesting that the assessee had not disclosed true and full facts. In the reasons recorded, the Assessing Officer does not even comment on the fact that M/s.Nitin Parikh and Co. were the sister concerns, a ground vaguely sought to be made out by the counsel for the Revenue. Assessing Officer merely hinted at lack of disclosure regarding the so called self inflicted loss. He did not even refer to the assessee's lack of disclosure of M/s.Nitin Parikh and Co. being sister concern. In any case, in the order of assessment itself, the Assessing Officer was actually aware about the fact that M/s.Nitin Parikh and Co. was a part of the group of companies of which the assessee was also one of the members. We have reproduced the rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this case, the assessment have been made u/s.153A r.w.s. 143(3) of the Act of ₹ 10,22,82,910/- as against the returned income of ₹ 2,780/- show by the assessee on 31.12.2007. The Assessing Officer has disallowed a loss of ₹ 9,36,93,513/- being loss booked in "off market transaction" and ₹ 85,86,619/- disallowed u/s. 14A of the Act. On going through the records it is seen that a loss of ₹ 8,26,92,608 incurred while dealing with another sister concerned viz Nitin Parikh & Co, Capital Market has not been disallowed. The loss of ₹ 8,26,92,608/- deserved to be disallowed as was done in the off market transaction with sister concern. The assessee group has not given full details regarding the self inflicted los ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s.Nitin Parikh and Co. and petitioner were sister concerns. The loss on off market transaction with this company to the tune of ₹ 8.26 crores (rounded off) was required to be disallowed as it was done in case of other group concerns. 4. From the reasons recorded by the Assessing Officer for issuing notice for reopening, one can gather that the sole ground pressed in service by the Assessing Officer was that the Assessing Officer had during the original assessment disallowed a loss of ₹ 9.36 crores (rounded off) on off market transaction with sister concern, but did not disallow similar loss of ₹ 8.26 crores on the off market transactions carried out by the assessee with M/s.Nitin Parikh and Co. which was also sister conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cerns which are in the fold of this group are as under: Sr. No. Name of the concern Status Director/partner/propr ietor 4 Nitin Parikh & Co. Proprietary Concern Shri Nitin Bhanukant Parikh 6. In para 6, he addressed the issue of "Loss in off market transactions:Rs.9,37,13,513/- " which represented the assessee's transaction that the said M/s.Nitin Parikh and Co. The Assessing Officer thereafter recorded the assessee's contentions in this respect and observed as under: "6.3 In order to verify genuineness of loss claimed by the assessee, during the course of assessment proceedings, vide para No. 15 of this office letter dated 20/09/2007 assessee was asked to furnish details as to sale and purchase transactions in shares wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see. In view of such facts, loss considered by your goodselves in proposed disallowance for A.Y. 20042005 is required to be reduced by ₹ 8,26,92,608." 8. It was only after such elaborate exercise that the Assessing Officer dropped his objection to the loss of ₹ 8.26 crores in the transactions between the assesses and M/s.Nitin Parikh and Co., making following observations: "(iii) So far as loss arose on account of normal transactions carried out with Nitin Parikh and Co. Capital Market is concerned assessee's contentions, is accepted for the reason that it is a subbroker of Anagram Securities Ltd. and the transactions with Nitin Parikh & Co. Capital Market are routed through the platform of stock exchange and therefore t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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