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TMI Blog2024 (9) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... evolve around the fact that the alleged parties have claimed losses and accordingly evaded taxes. Whereas the facts discussed hereinabove show that the assessee has earned derivative gains from M/s. Latin Manharlal Securities Pvt., Ltd. Therefore, the entire observations / basis of the assessment is factually incorrect. Since the assessment has been reopened on the wrong facts the impugned assessment order deserves to be quashed. The assessee has included the profit in its profit and loss account for the year under consideration, however, while concluding the assessment order the Assessing Officer has again made addition by holding as It is held that the assessee has routed back its own undisclosed money in the guise of profit from alleged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [hereinafter in short Ld. CIT(A) ] pertaining to A.Y. 2014-15. 2. The grievance of the assessee read as under: - 1. On the facts and circumstances of the case and law, the Ld. CIT(A) failed to consider that notice issued u/s 148 of the Income Tax Act, 1961 (the Act) dated 31.03.2021 which is bad in law and require to be quashed. 2. On the facts and circumstances of the case and law, the Ld. CIT(A) failed to consider that the permission obtained u/s 151 of the Act is not in accordance with law, as permission is given by PCIT in mechanical manner. Therefore, resultant proceedings u/s 148 are also bad in law and require to be quashed. 3. On the facts and circumstances of the case and law, the Ld. CIT(A) erred in confirming addition of Rs. 1,27 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n short Act ), the Assessing Officer issued notice dated 31.03.2021 stating the he has reasons to believe that income chargeable to tax for the year under consideration has escaped assessment within the meaning of section 147 of the Act. Issues as per reasons recorded for reopening the assessment read as under: - Issues as per reasons recorded for reopening The assessee-company has e-filed its return of income for the assessment year 2014-15 on September 25, 2014 declaring total income of Rs. nil. 2. As per information gathered from the ITD system as well as e-filing portal, it is noticed that the assessee-company M/s. Aadinath Securities P. Ltd. has entered into the following fictitious transactions through M/s. Latin Manharlal Securities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Trading 11,20,000 BSE Equity Derivative Profit 12. AAACL2767L Latin Manharlal Securities P. Ltd. 2013-14 Fictitious Profits in Equity/Derivative Trading 60,000 BSE Equity Derivative Profit 13. AAACL2767L Latin Manharlal Securities P. Ltd. 2013-14 Fictitious Profits in Equity/Derivative Trading 2,64,000 BSE Equity Derivative Profit 14. AAACL2767L Latin Manharial Securities P. Ltd. 2013-14 Fictitious Profits in Equity/Derivative Trading 16,00,000 BSE Equity Derivative Profit Total 1,27,52,200 3. The assessee-company has failed to offer this income derived by way of transactions entered, hence, the income is undisclosed and the nature and source of transactions remains unexplained. 4. On account of non-disclosure/non-reporting of the transacti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,649,198.22 (3,268,101.00) VI Exceptional Items -- -- VII Profit before Extraordinary Items and Tax (V VI) 1,649,198.22 (3,268.101.00) VIII Extraordinary Items -- -- IX Profit before Tax (VII VIII) 1,649,198.22 (3,268.101.00) X Tax Expense: Tax Adjustment of earlier written back / W/o --- (5,000.00) XI Profit for the Year (IX X) 1,649,198.22 (3,273,101.00) XII Profit for the year (XII) -- -- XIII Earnings per equity Share @10/- each (1) Basic 1.25 (2.48) (2) Diluted 1.25 (2.48) As per our report of even date attached For Aadinath Securities Pvt Ltd. For A.K. Dawda CO. Chartered Accountants Sd/- Sd/- Sd/- (A.K. Dawda) M.No. 30249 Proprietor Director Director Place: Mumbai Date: 02/09/2014 5. Note - 8 is as under: - AADINATH SECURITIES PVT., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en reopened on the wrong facts the impugned assessment order deserves to be quashed. 8. As mentioned elsewhere, the assessee has included the profit of ₹.1,27,27,019/- in its profit and loss account for the year under consideration, however, while concluding the assessment order the Assessing Officer has again made addition of ₹.1,27,52,200/- by holding as It is held that the assessee has routed back its own undisclosed money in the guise of profit from alleged share transaction and the same is added to the income of the assessee under section 68 of the Income-tax Act. 9. In our humble opinion, even if the income of ₹.1,27,27,019/- is not genuine may be even illegal, then also in our understanding of the law the same canno ..... X X X X Extracts X X X X X X X X Extracts X X X X
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