SANTOSH SONAWANE, MUMBAI V. INCOME TAX OFFICER WARD 2, PANVEL

ITA 4493/MUM/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 0720 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 16-07-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: CHAITANYA ANJARIA
• Section: 201; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES SMC, MUMBAI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER ITA NO.4493/MUM/2018 ASSESSMENT YEAR: 2010-11 SANTOSH SONAWANE, 505- ASHAPURA RESIDENCY, SECTOR NO.7, KHANDA COLONY, NEW PANVEL, NAVI MUMBAI. PAN AQWPS0060Q VS. ITO WARD 2 PANVEL. (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI CHAITANYA ANJARIA DATE OF HEARING : 0 3 . 0 7 .201 9 DATE OF PRONOUNCEMENT : 29 .0 7 . 201 9 O R D E R THIS IS AN APPEAL BY THE ASSESSEE DIRECTED AGAINST ORDER OF LEARNED CIT(A)-2, THANE, DATED 14.05.2018, PERTAINING TO ASSESSMENT Y EAR 2010-11. 2. THE ISSUE RAISED IN THIS APPEAL IS THAT LEARNED CIT(A) ERRED IN SUSTAINING ADDITION OF ` 2,01,595/- BEING LOSS CLAIMED THROUGH CLIENT CODE MODIFICATION. BRIEF FACTS OF THE CASE ARE THAT DURING THE YEAR, AS PER THE AO, THE, ASSESSEE HAD REDUCED HIS INCOME BY RS 2,01,595/- THROUGH CCM AND IN THE ABSENCE OF ANY VALID EXPLANATION, THE AO HAD ADDED THE SAME TO THE INCOM E OF THE ASSESSES. AS PER THE AO INFORMATION WAS RECEIVED FROM ADIT(INV) UNIT 1(3), AHMEDABAD TH AT THE ASSESSEE, SHRI SANTOSH K SONAWANE, HAVING PAX AQWPS 0060Q, HAD SIPHONED OUT PROFIT DUE TO CCM GENERATING LOSS OF RS 2,01,595/-, THEREFORE, THE SAME WAS REQUIRED IN BE VERIFIED. IN VIEW OF THESE FACTS THE AO RECORDED NECESSARY REASONS/SATISFACTION THAT THE INCOME TO THE EXTERN OF RS 2,01,595/-, FOR AY 2010-11 HAD ESCAPED ASSESSMENT AND, ACCORDINGLY, REOPENED T HE CASE BY ISSUING NOTICE U/S 148 OF THE ACT, WHICH WAS DULY SERVED UPON THE ASSE SSEE. IN COMPLIANCE IT WAS ITA NO.4493/MUM/2018 SANTOSH SONAWANE 2 SUBMITTED THAT THE RETURN FILED WITH THE DEPARTMENT MAY BE TREATED AS RETURN FILED IN COMPLIANCE TO THE SAID NOTICE. THE AO ALSO PROVIDED COPY OF REASONS RECORDED FOR HIS INFORMATION AND NECESSARY COMPLIANCE. IN COMPLI ANCE THE ASSESSEE DENIED HAVING DONE ANY TRADING BY CCM AND ALSO CHALLENGED THE REOPENING OF THE CASE. THE ASSESSING OFFICER, HOWEVER, REJECTED THE OBJECT IONS RAISED BY THE ASSESSEE, VIDE ORDER DATED 27.10.2017 GIVING DETAILED FINDINGS AT PAGE NO 4 TO 8 OF THE ASSESSMENT ORDER. THE AO AFTER CONSIDERING THE SUBMISSIONS, D ID NOT ACCEPT THE CONTENTION OF THE ASSESSEE AND HELD THAT MODIFICATION OF CLIENT C ODE IS A PRACTICE UNDER WHICH BROKER CHANGE CLIENT CODE IN SALE AND PURCHASE ORDE RS OF SECURITIES, AFTER TRADES ARE CONDUCTED. FURTHER HELD THAT WHILE IT IS LEGALLY PE RMITTED TO RECTIFY INADVERTENT ERROR IN PUNCHING THE ORDERS, THERE ARE CONCERNS THAT SUC H MODIFICATIONS COULD HE MISUSED FOR MANIPULATIVE ACTIVITIES IN THE MARKET AND ACCOR DINGLY THE ASSESSEE HAD GENERATED LOSS OF RS 2,01,595/-, THEREBY REDUCED ITS TAXABLE INCOME, BY USING CCM AND ACCORDINGLY TAXED THE SAID AMOUNT. 3. UP ON ASSESSEE'S APPEAL LEARNED CIT-A NOTED THAT THE LEARNED COUNSEL OF THE ASSESSEE, VIDE ORDER SHEET NOTING DATED 10/5/2018, HAS ACCEPTED THE ADDITION AND STATED THAT ASSESSEE WAS NOT INTERESTED IN PURSUING THIS GROUND IN APPEAL. TAKING THIS CONCESSION INTO ACCOUNT THE LEARNED CIT-A DISM ISSED THIS GROUND. NOW THE ASSESSEE HAS FILED APPEAL AGAINST THIS BEFORE THE I TAT. 4. I HAVE HEARD THE LEARNED DEPARTMENTAL REPRESENTA TIVE. NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE NOTICE. 5. UP ON CAREFUL CONSIDERATION, I NOTE THAT THE LEA RNED COUNSEL OF THE ASSESSEE HAS DULY CONCEDED FOR THE ADDITION/DISALLOWANCE BEF ORE THE LEARNED CIT-A BY SIGNING ON THE ORDER SHEET. THIS IS AN ISSUE OF BOGUS BOOKI NG DETECTED BY THE INVESTIGATION WING. THE ASSESSEE HAVING CONCEDED THE MATTER BEFOR E THE LEARNED CIT-A HAS NOW RAISED APPEAL BEFORE THE ITAT. THERE IS NO WHISPER AS TO WHY THE MATTER HAVING BEEN CONCEDED BEFORE THE LEARNED CIT-A IS NOW BEING CHALLENGED. ITA NO.4493/MUM/2018 SANTOSH SONAWANE 3 6. IN MY CONSIDERED OPINION THE ASSESSEE HAVING CON CEDED BEFORE THE LEARNED CIT-A ON A MATTER OF FACT CANNOT AGITATE THE SAME F URTHER. ACCORDINGLY, THIS APPEAL RAISED BY THE ASSESSEE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 2 9 TH JULY, 2019. SD/- (SHAMIM YAHYA) ACCOUNTANT MEMBER MUMBAI, DATED : 29 TH JULY, 2019. SA COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE C I T(A), 4. THE C I T 5. THE DR, SMC BENCH BY ORDER //TRUE COPY// (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, MUMBAI