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8. Grounds No. 2 and 3 of the appeal are regarding the addition made by the Assessing Officer on account of Client Code Modification by the brokers in respect of the transactions carried out at stock exchange and commission on the said amount, which was deleted by the ld. CIT(A).

9. The ld. CIT-DR has submitted that as per the investigation done by the Directorate of I&CI, Mumbai as well as Directorate of Ahmadabad, it was found that fictitious profits and losses were created by some brokers DCIT Vs. Gyandeep Khemka by misusing the Client Code Modification facility in F & O segment on NSE. The ld DR has referred to the assessment order and submitted that the Assessing Officer has given detailed commentary as to how the Client Code Modification is done by the brokers at the stock exchange. Client Code is a unique code which is assigned by the broker to its clients and one code is issued to each client, therefore, no client of a broker can have more than one code. The SEBI vide circular No. 39 of 2001 dated 18/07/2001 made it mandatory for all brokers to use unique client code for all clients. In case of any genuine mistakes, a client code is permitted to be changed after execution of trades, however, this permission is given only in exceptional cases of genuine mistakes to be rectified. Thus the purpose of Client Code Modification permission given to the broker is to rectify human error when a client inadvertently provides a wrong code or a wrong code is punched by the broker while executing trade. The broker is allowed to change the client code after trade is executed between 3.30 P.M. to 4.000 P.M. and this permission and facility to rectify a genuine error which might have occurred while entering the code. During the investigation, it was found that the certain brokers are misusing this facility for the purpose of other than genuine errors. The Client Code Modification facility was being misused and brokers transferred gain or loss from one person to another by changing the code in the garb of correcting the error. In the case of assessee, there DCIT Vs. Gyandeep Khemka are multiple edits in the client code which has resulted shifting of profit of Rs. 3,52,94,489/- from the assessee's account. The ld DR has submitted that as many as 97 incidents of client code modification whereby the profits were shifted from assessee's account to these 97 parties in the garb of Client Code Modification after execution of trades and therefore, it cannot be a genuine mistake for which this facility is allowed by the SEBI and stock exchange. The Assessing Officer has given the details of all 97 persons in whose favor the profits were shifted total amounting to Rs. 3,50,99,887/-. Further the profit to the tune of Rs. 1,94,602/- was also shifted in respect of the three other persons. Thus, a total instances of shifting of profit is 100 in the case of the assessee. Thus, the Assessing Officer has established a case that the assessee has misused the facility of Client Code Modification and has shifted out of income of Rs. 3,50,99,887/- to various parties and also shifted in losses of Rs. 1,94,602/- from three parties and in this way it has reduced its taxable income of Rs. 3,52,94,489/-. The Assessing Officer has rightly considered 2% commission on all those transactions and computed the said amount of commission paid at Rs. 7,05,890/-. Hence, the ld DR has submitted that the modus operandi of involvement of misusing the Client Code Modification by the brokers from one client to another client to avoid the tax is clearly brought out by the Assessing Officer and the case of the assessee is nothing but shifting of profit by misusing the said DCIT Vs. Gyandeep Khemka facility of Client Code Modification in connivance with the brokers and in some cases, the loss of the other parties were also shifted to the assessee. Thus, it is both ways the assessee has reduced its taxable income. He has relied upon the order of the Assessing Officer.