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Further after consulting the broker namely Competent Finman Pvt.Ltd.jhe following points were noted.
• Assesse 'sbroker was using numeric codes to fasten the punching of the orders, resulting in higher number of errors.
• It is further relevant to mention that up to 1% CCM is allowable as per guidelines of SEBI notice number NSE/INVG/201 l/596as genuine errors owing to voluminous data, nature of stock market as rates change every second , inexperience and human errors on part of operators and other technical snags.
It is further highlighted before your goodstlf thai during the course o f assessment proceedings Ld. Assesing Officer also mentioned in his Show cause Notice that assessee was doing business with the M/S Maheshwari Technical and Financial Services Ltd. In reply to show cause notice by the assessee that no dealing was ever been done with M/S Maheshwari Technical and Financial Services Ltd. After this Ld. Assessing officer agreed that it was clerical and human error. Similar in such a large scale o f transactions clerical mistake are human error are bound to happened It is further relevant to mention that assesse is reflecting income to the tune of Rs. 109078480/- is assessment year 2010-11, i.e. is the relevant year and paying income tax in croresthereon., Hence it is clear that assesse will not indulge in petty illegal activities. It is a hard fact and human psychology.
It is further relevant to mention that CCM data rectification was done duly approved by SED1, which is governing body of the stock exchanges of India. No fine or penalty was imposed by SEBI on the broker stating that CCM done due to human, communication, data handling errors & other unavoidable errors mentioned in the reply above and was not intentional..
In support of contention of the assessee, following judgment is hereby quoted as under:
in the case of M/S Kunvurji Finance Pvt. Ltd.