Client Representations

The Hon’ble Tribunal quashed the order passed by the ld. CIT(A) by observing that the information provided by the Investigation Wing cannot be treated as the gospel truth to presume escapement of income. In the absence of specific details such as the identity of brokers, trader information, client code details, and the extent of fictitious losses or profits, a crucial link between the data received by the Assessing Officer (AO) and the formation of belief is missing. The AO did not conduct an independent inquiry to verify the information or establish that income had escaped assessment, but merely reproduced the precise information he had received from the Investigation Wing.