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Income Tax

No Trade, No Income – Broker’s PAN Error Collapses Addition

Case Law Details

TaxGuru Citation
2025 taxguru.in 13635
Case Name
Debasis Mukhopadhyay Vs ITO (ITAT Kolkata)
Date of Judgement/Order
Only available for paid members
Related Assessment Year
2011-12
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Debasis Mukhopadhyay Vs ITO (ITAT Kolkata)

Wrong PAN Uploaded by Broker—Kolkata ITAT Deletes Bogus Commodity Profit Addition; No Trade, No Income:Broker Admits Error in UCC Upload

Kolkata ITAT ‘SMC’ Bench in Debasis Mukhopadhyay vs ITO, Ward-61(1), Kolkata (ITA No.2011/Kol/2025, AY 2011-12, order dated 23-12-2025) allowed the assessee’s appeal and deleted the addition of ₹4,01,687, holding that the alleged commodity profit was wrongly attributed to the assessee due to incorrect PAN upload by the broker.

he assessment was reopened u/s 147 on the basis of information that the assessee had booked bogus commodity profits of ₹3.80 lakh through broker Kalkut Tie Up Pvt Ltd. Despite the assessee’s categorical denial of having executed any commodity transactions or even knowing the said broker, the AO treated the amount as undisclosed income, which was confirmed by CIT(A), NFAC.

Before ITAT, it was demonstrated that Kalkut Tie Up Pvt Ltd itself issued a written confirmation dated 14-01-2019, admitting that wrong PAN details were uploaded on the commodity exchange UCC platform, and that the impugned trades actually belonged to another person (Mr. Ashok Kumar Sarda) and not to the assessee.

ITAT noted that once the broker admitted the mistake and clarified ownership of the trades, there remained no material whatsoever to sustain the addition in the hands of the assessee. The Tribunal held that the orders of the lower authorities were based on incorrect attribution of income and were therefore unsustainable in law.

Accordingly, ITAT set aside the order of CIT(A) and directed the AO to delete the entire addition of ₹4,01,687, allowing the appeal in full.

Key takeaway:
Income cannot be fastened merely on the basis of exchange data when the broker himself admits wrong PAN mapping. Incorrect UCC/PAN uploads by brokers cannot result in taxable income in the hands of an innocent assessee—identity of the real trader is decisive.

FULL TEXT OF THE ORDER OF ITAT KOLKATA

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Author Info

CA Vijayakumar Shetty
Qualification: CA in Practice
Company: Shetty & Co, Chartered Accountants, Mangalore
Location: Mangalore, Karnataka
Articles Published: 6,844

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