Dismissing the appeal of the assessee the Tribunal held that Unusual & sudden spurt in client code modifications undertaken by brokers was with an intention to evade taxes. In large number of client code modifications, there are no similarity between wrong code and correct code and secondly there are repetitive client code modifications. Thus, client code modifications are tainted with collusive action and manipulations & shall go out of the protection granted by the circulars of NSE/SEBI Followed Rakesh Gupta 405 ITR 213 (P&H) & Ninja Securities followed). Reassessment is also upheld. (ITA no.6534/Mum/2017 ( AY. 2010-11)
Time Media & Entertainment LLP v. ITO (Mum.)(Trib.), www.itatonline.org
S. 28(i) : Business loss-Future and options loss-Client code modification- Repetitive client code modifications-Client code modifications are tainted with collusive action and manipulation– Loss is held to be bogus–Not allowable as business loss- Reassessment is also upheld. [S.133(6), 147, 148]