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TMI Blog2023 (5) TMI 1214X X X X Extracts X X X X X X X X Extracts X X X X ..... for obtaining a loss of is beyond logic and not borne out of any record. Hence, the order passed by the Assessing Officer u/s 147 dated Nil is to be treated non est in the eyes of law. Appeal of the assessee is allowed. - ITA No. 1473/Del/2022 - - - Dated:- 23-5-2023 - Dr. B. R. R. Kumar, Accountant Member And Ms. Astha Chandra, Judicial Member For the Assessee : Sh. R. S. Singhavi, Adv. For the Revenue : Sh. H. K. Choudhary, CIT DR ORDER PER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER: The present appeal has been filed by the assessee against the order of ld. CIT(A)-29, New Delhi dated 08.06.2022. 2. The assessee has raised the following grounds of appeal: 1(i) That on the facts and circumstances, the CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st the appellant, the entire basis of reopening is mechanical and bad in law. 3. That the loss incurred in derivative segment on recognized stock exchange being genuine and allowable in terms of proviso to section 43(5) of the Income Tax act, 1961, there is no case of escapement of income in terms of section 147 of the Income Tax Act, 1961 and consequential reopening u/s 147 of the Income Tax Act, 1961. 4. That on the facts and circumstances of the case, the CIT(A) has erred in upholding the notice u/s 148 issued without proper approval in terms of section 151 of the Income Tax Act, 1961. 5(i) That on the facts and circumstances of the case, the CIT(A) has grossly erred in treating the loss of Rs. 99,68,982/- suffered in trad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd also added an amount of Rs.3,27,45,176/- being 2% of commission for availing bogus loss. Reasons recorded for re-opening: 4. In this case, information has been received by the AO under Project Falcon from DGIT(Investigation), Mumbai on 19.03.2020 through the Income-tax Business Application regarding (coordinated and premeditated) trading on the United Stock Exchange of India by engaging in reversal trades in illiquid stock options resulting in non-genuine business loss/gains to the beneficiary assessee and that the present assessee is a party to such manipulation. 5. From the data made available under Project Falcon on the ITBA, the AO held that the assessee has purchased stock options for an aggregate / premium value amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PARTHSARTHI MERCANTILE PVT LTD PARTHSARTHI MERCANTILE PVT LTD PARTHSARTHI MERCANTILE PVT LTD QUADEYE SECURITIES PVT LTD PARTHSARTHI MERCANTILE PVT LTD PARTHSARTHI MERCANTILE PVT LTD PARTHSARTHI MERCANTILE PVT LTD PARTHSARTHI MERCANTILE PVT LTD CONCORD VINIMAY PVT LTD GIRIRAJ STOCK BROKING PVT LTD CONCORD VINIMAY PVT LTD GIRIRAJ STOCK BROKING PVT LTD CONCORD VINIMAY PVT LTD GIRIRAJ STOCK BROKING PVT LTD CONCORD VINIMAY PVT LTD GIRIRAJ STOCK BROKING PVT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee did not claim the current year loss in its return of income filed for AY 2013-14. Thus, the assessee has failed to disclose truly and fully all material facts concerning its income for the assessment year under consideration. 10. Findings of the AO: From the information received from the DDIT(Investigation), Mumbai, it is found that the assessee company have been trade through M/s Concord Vinimay Pvt. Ltd. And M/s Giriraj Stock Broking Pvt. Ltd. and booked losses. These companies directors have accepted in their statements which were recorded during the survey operation conducted on these companies that they are providing accommodation entries to various beneficiaries in lieu of commission in cash after charging fixed percenta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue has not filed any appeal against the order of the ld. CIT(A). 15. Heard the arguments of both the parties and perused the material available on record. 16. The pertinent facts are as under: The assessee did not claim the losses incurred. The case has been assessed u/s 153A of the Income Tax Act, 1961. The Giriraj Stock Broking Pvt. Ltd. who is a stock broker registered with BSE has categorically informed the ACIT that the assessee was never their client. Copies of the contract note have been examined. Notification No. 12/2011 [F.No. 142/20/2010-SO(TPL)] dated 25.02.2011. In exercise of the powers conferred by clause (ii) in the Explanation to clause (d) of the proviso to clause (5) of section 43 of the Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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