Share of client pledged by broker cannot be treated as his undisclosed investment

DCIT Vs Trustline Securities Pvt. Ltd (ITAT Delhi) Held that broker pledged the shares of the clients with banks for obtaining bank finance. It is not justified to take value of shares pledged as undisclosed investment of the broker. Facts- The assessee is a company which is a member of National Stock Exchange (“NSE”) and also of Bombay Stock Exchange (“BSE”). It is engaged in the business of share broking and depository service and brokerage from such services. AO was of the view that the assessee had taken overdraft facility against pledge of shares from Citi Bank and Kotak Mahendra ...