Case Law Details
OPG Securities Pvt. Ltd. Vs DCIT (ITAT Delhi)
ITAT Delhi held that commission taxed @2% of the amount of accommodation entries provided by the assessee has not been made on ad hoc basis, however, the same is as per prevailing market rate. Accordingly, the addition is sustained.
Facts- The assessee, a private limited company incorporated under the Companies Act, 1956 is a registered stock broker at National Stock Exchange (NSE) & Bombay Stock Exchange (BSE) and engaged in trading in shares, securities, derivatives, currency, futures & option (F&O), etc., through algorithmic trading, ie, automatic trading through software. The income of the assessee primarily includes income from sale & purchase of securities in its Proprietary Account (PRO account) and brokerage income. The assessee maintains client account for their dealing in shares, securities, etc, and all the trades are executed/ transacted online on an electronic platform in real time and in the open market on recognized stock exchanges all over India.
A search and seizure operation u/s. 132 was carried out at the various premises of the assessee and other persons. During the search operation, various documents, e-mails, printouts from the assessee company’s computers and images retrieved from mobile phones and hard disks, pen drive were found and seized. The said laptop contained a number o f excel worksheets containing details of various receipts and payments.
AO determined an amount of Rs.59,23,46,638/- being the difference between the receipts and payments as the undisclosed income of the assessee for the entire period of assessment u/s 153A. Further, AO determined unaccounted income from trading and commission as undisclosed income of the assessee.
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