9911796707
TMI Blog2023 (1) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... peared on behalf of the assessee nor was any application seeking adjournment filed. From the perusal of the record, we find that since the previous 7 occasions no one has appeared on behalf of the assessee. Therefore, we proceed to dispose off this appeal ex-parte, qua the assessee after hearing the learned Departmental Representative ("learned DR") and based on material available on record. 3. The assessee has also filed an application seeking condonation of delay in filing the present appeal. In the aforesaid application, the assessee submitted that it was under the honest impression that an appeal against the order passed under section 263 can be filed only after the assessment proceedings are completed and therefore the assessee did no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sworn by the partner of the assessee firm, we find that the assessee was under a bona fide belief that the impugned order was not appealable before the Tribunal. The assessee also claimed to have not received proper professional guidance regarding the same. The assessment order under section 143(3) read with section 263 of the Act was passed on 27/12/2018, and the present appeal was filed thereafter on 14/02/2019. Since the impugned order is an appealable order before the Tribunal, it appears to be a case where due to improper professional guidance the assessee failed to file the appeal within the limitation period. It is well established that rules of procedure are handmaid of justice. When substantial justice and technical considerations ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case of the assessee and notice dated 31/03/2015, under section 148 of the Act was issued. In response to the notice issued under section 148 of the Act, the assessee filed a letter requesting that its original return filed on 25/09/2010, may be treated as a return filed in response to notice issued under section 148 of the Act. During the reassessment proceedings, the assessee was asked to explain the transaction with Mr. Samta C. Thakkar and Mr. Vipul Deepak Shah. In reply, the assessee submitted that whatever gain the assessee has received has been offered for taxation and in any case, the assessee is a dealer engaged in trading of shares, future and options. Hence the transaction made through client code modification is out of the pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the head dividend income, however, the AO has not examined the applicability of section 14A read with rule 8D while passing the assessment order. 9. In response, the assessee objected to the initiation of revision proceedings under section 263 of the Act and submitted that reassessment proceedings under section 147 of the Act were initiated based on the transaction made through client code modification, and during the said proceedings assessee had submitted all the details with respect to the client code modification issue to the satisfaction of the AO and accordingly the assessment order was passed after verification of assessee's submission. Thus, the assessment order is not erroneous and not prejudicial to the interest of the Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of the 2 brokers viz. J.L. Shah Securities Pvt. Ltd and Ashvin M Shah to substantiate its submission that the said transaction in shares/F&O belongs to the assessee. It is evident from the record that the AO has made no enquiry to examine the source of investment or the genuineness of the profit earned by the assessee. The AO also did not examine the original clients whose codes were alleged to have been modified to show the fictitious profit in the hands of the assessee. The AO merely proceeded to accept the contract notes of 2 brokers submitted by the assessee without appreciating the fact that in the alleged transaction of client code modification these brokers would have been actively involved and their statement cannot be treated as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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