ITAT upheld disallowance of losses by client code modification

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 Modificatio...