| COURT: | ITAT Mumbai |
| CORAM: | N. K. Pradhan (AM), Sandeep Gosain (JM) |
| SECTION(S): | 29, 37(1) |
| GENRE: | Domestic Tax |
| CATCH WORDS: | bogus capital gains, CCM, Client Code Modiciation |
| COUNSEL: | Dr. K. Shivram, Rahul Hakani |
| DATE: | May 13, 2019 (Date of pronouncement) |
| DATE: | August 3, 2019 (Date of publication) |
| AY: | 2010-11 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| Suppression of profit/ fictitious loss in stocks/ derivatives by way of Client Code Modification (CCM): CCM within 1% is absolutely normal. By no stretch of imagination can any AO consider a transaction on the Stock Exchange as income of a person other than the one who has either actually received monies in his bank account (in case of profit) and/or paid any monies from his bank account (in case of losses). The AO has to show that the losses were purchased and the party was given cheque or cash payment in view of such favours | |
The broker, through whom the assessee carried on share transactions, were also not imposed any penalty. No co-relation between the assessee on the one hand and the other parties on the other hand has been brought on record to co-relate that the parties to whom the alleged profits or loss is supposed to have been diverted to reduce the taxable income of the assessee, has been brought on record to show that there was any collusion with each other and were known to each, so that one party diverted its profit or loss to the other parties. Even nothing has been brought on record to suggest that the said losses were purchased and the party were given cheque or cash payment in view of such favour
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