Shukra Bullions Ltd. Vs ITO (ITAT Mumbai)
Mumbai ITAT deleted an addition of ₹2,02,100 made on account of alleged Client Code Modification (CCM) transactions, holding that mere reliance on investigation wing information is insufficient without corroborative evidence.
The Tribunal observed:
- Reopening and addition were based solely on ADIT (Investigation) report alleging fictitious CCM transactions
- No direct evidence, broker statement, or material linking the assessee to such transactions was produced
- The assessee had categorically denied involvement and furnished complete financial records, tax audit report, and books of account
- The AO failed to rebut the documentary evidence or establish actual benefit derived by the assessee
Importantly, the ITAT noted that:
- The assessee had neither shown any profit nor claimed any loss from such alleged transactions
- Addition based on general suspicion and third-party information cannot be sustained
Accordingly, the Tribunal held the addition unsustainable in law and on facts, directed deletion, and allowed the appeal in full.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The instant appeal of the assessee filed against the order of the NFAC, Delhi [for brevity the “Ld. CIT(A)”], order passed under section 250 of the Income Tax Act 1961 (for brevity ‘the Act’) for Assessment Year 2009-10, date of order 30.07.2025. The impugned order emanated from the order of the Ld. Income Tax Officer Circle 5(3)(2), Mumbai (for brevity the ‘Ld. AO’) order passed under section 143(3) r.w.s. 147 of the Act date of order 23.12.2016.
