9911796707
TMI Blog2017 (6) TMI 1211X X X X Extracts X X X X X X X X Extracts X X X X ..... for assessment year 2009-10. Shri S.K. Tulsiyan Ld. Advocate appeared on behalf of assessee and Shri Sallong Yadden, Ld. Departmental Representative represented on behalf of Revenue. 2. At the outset, Ld. Counsel for the assessee brought to our notice that he has been instructed not to press additional grounds of appeal submitted dated 20-1-2017. After hearing Ld. DR in this regard, the said additional grounds raised by assessee are dismissed as not pressed. 3. Sole issue raised by assessee in its grounds of appeal is that Ld. CIT(A) erred in holding the loss of Rs.19,76,538/- in the transactions of derivatives as bogus loss. 4. Briefly stated facts are that the assessee is a private limited company and engaged in the business of dealing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were carried out within the time permitted by the Stock Exchange. The assessee also submitted that the Security Transaction Tax (STT) was paid in respect of all the transactions giving rise to the impugned loss. However, AO disagreed with the contention of assessee on account of following reasons:- (a) The impugned loss was incurred by the assessee at the fag-end of the year and similar loss was also incurred in the immediate preceding AY 2008-09 at the fag-end of the year which was also disallowed. (b) The client code and name were modified by RCML without having instruction from the assessee. (c) The nature of modification carried out in the client's name and code do not suggest that it was a clerical punching error rather it is su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rules and regulations prescribed by SEBI and the AO had proceeded on suspicion, however at the same time it also cannot be concluded either that the loss would not be attributable to these "modifications". Thus, I find merit in the contention of the AO. Therefore, the appellant's contention in respect of the claim of loss cannot be acceptable as the same pertained to the modified transactions being entered into by the appellant's sister concern who was the Broker and helped in manipulation for the benefit of the Appellant. I also find that similar addition was made by the AO on the same ground in the previous AY 2008-09 and the CIT(A)-XXX, Kolkata has partly confirmed the addition so made by the AO vide Appeal Order dated 23.11.2012. Hence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evolves for the amount of loss claimed by assessee for Rs.19,76,538/- which was treated by the Authorities Below as bogus mainly due to the modification carried out in the name and code of the assessee by the broker. The director of the assessee-company and the director of the broker company listed with NSE are same person. The impugned loss was treated as bogus due to several reasons such as it was incurred at the fag-end of the year, to reduce the taxable profit earned by assessee during the year and similar kind of loss was also disallowed in the immediate preceding year. 7.1 From the foregoing discussion, we find that indeed the client's code and name were modified in respect of transactions claimed by assessee. However, on perusal of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e details furnished by the assessee in respect of transactions giving rise to the loss were exactly matching with the details furnished by the NSE. In none of the case, Authorities Below have brought on record where any mismatch is found between the books of the assessee and the confirmation received from NSE. Had there been any manipulation in the impugned loss then it could have been revealed from the confirmation received from NSE. Therefore, the modifications in the client's name and code cannot justify the impugned loss as bogus. Thus, we conclude that the impugned addition has been made by the Authorities Below on the basis of surmise and conjecture which is not permissible in the eyes of law as held by the Hon'ble Supreme Court i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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