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It may be noted that the STT rate of 0.025% was not applicable during the period covered under the relevant previous year. Further in case of same day square off transaction in cash segment and transactions in derivative segments STT is charged only one side on sale. The Turnover and STT paid on the same are properly reflected and disclosed. We enclose Anand Rathi Direct India Pvt Ltd Mumbai-A Bench herewith Form 10DB showing the amount of turnover and STT paid for each segments in support of our claim of rebate under section 88E of I.Tax Act.

Similarly transaction charges are different for different kinds of Trades as detailed hereunder.

    BSE Cash charges       Rate %     Levied on
    Transaction            0.0035     Turn over
    charges
    NSE cash charges
    Transaction            0.0035     Turn over
    charges
    NSE        Derivates
    Charges
    Transaction            0.0041     Turn over
    charges
    Transaction            0.0021     Turn over
    charges

From the above table, it may be observed that Transaction Charges are not normally half of STT charges as stated in your letter. There are definite rates at which Transaction Charges an STT are charged in the bills. In view of above the estimated working of profitability made by you in the letter is not valid and justified on any ground and are baseless. The above submissions of the assessee only refer to the prescribed rate of STT and transaction charges levied by the exchanges. The assessee did not furnish the reconciliation of the transactions asked from it from it's books of account but only placed reliance on form 10DB issued by the broker. This is a clear refusal of submitting the information as required for the purpose of scrutiny. Even the transactions disclosed in the form No.10DB were also not reconciled by the assessee with reference to the profits shown in the Profit & Loss A/c filed with the record. This attitude of assessee only leads to conclusion that assessee neither have any details nor willing to bring the material facts on record for determination of the correctness of the income disclosed in the return filed for the year. The details available in form 10DB are summarized as under:

Anand Rathi Direct India Pvt Ltd Mumbai-A Bench iv. The figures as the Learned Income 'fax Officer has estimated is not correct since the Learned income Tax Officer has estimated the turnover on the basis of STT rate @ .025 which was not applicable during the year. The rates of STT on all segments at BSE and NSE are not same as taken by the Learned Income Tax Officer. The rates of all segments are different and not equal. The rates can not be taken arbitrary as there are different& definite rates at which STT and transaction charges to be charged prescribed by the Govt. of India. It may be appreciated that all transactions of appellant have been undertaken on Recognized Stock Exchanges (BSE and NSE) of eligible equity shares only. The estimated working of profitability in those circumstances is not valid and justified. All the transactions are - completely transparent and can be verified from 10DB certificate. We therefore request your honour to take the actual figures as declared and direct the learned Income Tax officer not to take any income on estimation basis and request to allow the all expenses as claimed an4 also allow security transaction tax paid as Rebate u/s 88E of the Act and oblige.

13. It was learned Counsel's submission that referring to the order of Assessing Officer, the main focus of Assessing Officer out of 44 pages of order upto page 33 was with reference to investment in unquoted shares and how those transactions are to be treated as business income but not capital gain. Inspite of explaining that there are different STT charges as stated in page 34 of the order and furnishing complete details, evidence on the basis of the form 10DB furnished by various clients, Assessing Officer not only considered amounts wrongly but arrived at decision of rejecting books of account and estimated turnover at 1% without any basis or comparative figures, arbitrarily. He explained reconciliation made before CIT (A) and supported order of CIT (A).