9911796707
TMI Blog2022 (7) TMI 940X X X X Extracts X X X X X X X X Extracts X X X X ..... ot been investigated in entirety, rather both AO as well as Ld. CIT(A) proceeded on the basis of assumptions and surmises. When all the transactions carried out by the assessee during the year under assessment carried through his brokers are duly detailed with NSE, the complete investigation is required to be done. Moreover in para 4.5 AO has also come up with observations that client code 43334 also belongs to the assessee, which fact also remained uninvestigated if the assessee was operating through two client code one 7550 and two 43334. We hereby set aside the order passed by the Ld. CIT(A) and remit the file back to the AO to investigate in accordance with the observation made in the preceding paras and decide afresh after provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion that the broker M/s B P Equities Pvt. Ltd. through whom assessee had booked losses has been reprimanded by the SEBI multiple times for indulging in fraudulent and unfair trade practices. (iii) The appellant craves leave to amend or alter any grounds or add a new ground which may be necessary. 2. Briefly stated facts necessary for adjudication of the controversy at hand are : assessment in this case was reopened by issuing notice under section 148 of the Income Tax Act, 1961 (for short the Act ). Thereafter, notices under sections 143(2) and 142(1) of the Act were issued and served upon the assessee. During assessment proceedings the Assessing Officer (AO) noticed that the assessee has entered into certain trades in shares ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y way of filing present appeal. 4. Despite issuance of the notice to the assessee none appeared on behalf of him, so the Bench decided to decide this appeal on the basis of material available on record with the assistance of the Ld. D.R. for the Revenue. 5. We have heard the Ld. Departmental Representative for the Revenue, perused the orders passed by the Ld. Lower Revenue Authorities and documents available on record in the light of the facts and circumstances of the case and case law relied upon. 6. Undisputedly, during the year under assessment assessee has entered into certain trades in shares and securities on NSE through its brokers. It is also not in dispute that assessee has claimed loss of Rs.8,80,324/-. AO proceeded to di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e copy of HDFC Bank statement of the appellant for F.Y. 2008-09 duly highlighting the payment transactions against the loss incurred for the period alongwith the copy of the reply filed by the broker against the notice u/s.133(6) of the Act dated 23.12.2016 during the course of assessment proceedings. From the copy of reply filed by the broker, M/s. B.P. Equities P. Ltd., alongwith the detailed P L statement in F O segment for F.Y.2008-09, it has been observed that the transactions done by the appellant that resulted in losses. Thereafter, since the appellant incurred huge losses during the period from 20.01.2009 to 31.01.2009, he stopped trading with the broker M/s. B.P. Equities P. Ltd. and did not do any single trade thereafter till date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x. It is observed that while the report in the matter pertained to March 20210, the trades of the appellant had taken place in January 2009. Hence, it cannot be presumed that the appellant was part of the tax evasion racket that took place in March 2010. 5.1.3 It has also been observed that the appellant had incurred losses to the extent of Rs.9,65,772/- for the transactions made in F O trading through the share broker M/s. B.P. Equities P. Ltd. during the period from 20.01.2009 to 31.01.2009. However, during the F.Y.2008-09 the appellant had earned the net profit of Rs.14,59,988.56/- through trading in F O business (after adjustment of above mentioned loss) and paid a total tax of Rs.2,41,442/- during the year. The appellant has righ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nancial Services Pvt. Ltd. and not the assessee. These are the submissions of the assessee which have never been investigated by the AO nor by the Ld. CIT(A). 10. Again para 4.5 of the assessment order shows that AO reached the conclusion that the assessee s client code is 43334 and the transaction in question pertains to the assessee only. All these facts go to prove that the AO has proceeded on the assumptions and these facts also have not been got investigated by the Ld. CIT(A) during appellate proceedings. Rather Ld. CIT(A) has proceeded merely on the basis of contentions raised by the assessee without any verification of facts by the AO. 11. In these circumstances, we are of the considered view that when investigation has not bee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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