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51,47,000/- in equity and derivative trading in illiquid derivatives on BSE. A copy of the notice u/s 148 issued on 31/3/2021 is available on Paper Book Page No.25. In response to notice u/s 148, the assessee filed return of income on 13/4/2021. Copy of acknowledgement of return so filed along with computation of income is available on Paper Book Page No. 26-28. The assessee filed objections against initiation of proceedings u/s 147, vide letter dated ITA NO. 465/JP/2024 BRIGHT SECURITIES PVT LTD. VS ITO, WARD 2(2), JAIPUR 06/07/2021. Copy of the same is available on Paper Book Page No. 29-34. The assessee during the course of assessment proceedings also filed replies along with contract notes and other details in support of the income/loss earned from share trading. The AO completed the assessment u/s 147/144B, vide order dated 23/3/2022, determining the total income at Rs. 46,81,114/-, inter-alia, making addition of Rs. 41,34,571/- by disallowing the loss from share transaction in equity derivatives conducted through M/s Maverick Share Brokers, treating the same as fictitious loss. In this case, it is noted that AO has initiated action u/s 148 on the basis of information received from Investigation Wing. A copy of the reasons recorded on 31/3/2021 is available on Paper Book Page No.35-37. It has been mentioned in the reasons by the AO that assessee earned fictitious profits in equity and derivatives trading on BSE of Rs. 51,47,700/-. The AO has further mentioned that no inquiry was required at his level as complete inquiry stood made by the Investigation Wing, Bombay. In this regard, it is observed that the AO has erred in law in issuing notice u/s 148 on the basis of incorrect facts as he did not undertake any exercise to verify whether there were any fictitious profits of Rs.

2. . On the facts and in the facts and circumstances of the case and in law the AO erred in issuing notice u/s 148 on incorrect facts, hence ITA NO. 465/JP/2024 BRIGHT SECURITIES PVT LTD. VS ITO, WARD 2(2), JAIPUR the issuance of the same is ab initio void. The ld. CIT(A) erred in confirming the action of the AO.

3. . On the facts and in the facts and circumstances of the case and in law the AO erred in passing order u/s 148(d) on 27-07-2022 for issuing notice u/s 148 again on 27-07-2022 on the ground that notice issued earlier on 31-03-2021 was not served by 31-03-2021. The ld. CIT(A) erred in confirming the action of the AO.'' 8.2 The Bench has admitted the additional grounds of appeal as raised by the assessee in view of the findings given in the case of the assessee in ITA No. 465/JP/2024 for the assessment year 2013-14 9.1 Apropos Ground No. 1 & 2 of the assessee and additional grounds (supra), the facts as emerges from the order of the ld. CIT(A) wherein the ld. CIT(A) has dismissed the appeal of the assessee by observing at para 6 to 8.2 of his order as under:-