Case Law Details
Chandresh Luniya Vs ITO (ITAT Ahmedabad)
The facts in brief are that the assessee in the present case is an individual and engaged in the activity of derivative business of shares and securities. In the present case it was found by the AO that the assessee has obtained the benefit of accommodation entries by way of client code modification used by the broker namely M/s Mehta Finstock Pvt. Ltd. Thus the losses claimed by the assessee for Rs. 12,56,760/-, on account of client code modification was disallowed and added to the total income of the assessee.
CIT (A) held that Client Code Modifications have been made in as many as 63 transactions, It is difficult to understand how genuine punching errors can occur in such large numbers. One can understand if an error is made on one or two occasions. However, the error in punching on 63 separate occasions in respect of the same broker and client is highly unlikely and suspicious. All the derivative transactions took place with same broker but on different dates. It is very unlikely that the same mistake will be committed by same person on various dates. Especially since the error in. entry of client code has to be corrected on the same date. It is unlikely that the same broker will keep on making error and correcting it again and again within a short span of time. Addition made by the AO cannot be taken to be based merely on suspicions, conjectures and surmises, as he has collected information from the National Stock Exchange as well as the appellant’s broker before arriving at his decision.
We have heard the Ld. DR and perused the materials available on record. At the outset, we note that the matter has already been listed for hearing on several occasions but none appeared on behalf of the assessee despite the fact that the notices for hearing were issued at the given address of the assessee. It is the trite law that the assessee should be vigilant enough to pursue the appeal after filing the same. The law assist those who are vigilant in their rights and not those who sleep on their own rights. In the absence of any contrary information available on record and after considering the fact that the Ld. CIT(A) has passed a detailed reasoned order as discussed above, we do not find any infirmity in the order of the authorities below. Hence, the ground of appeal of the assessee is dismissed.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
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