2008-09
Beneficiary Beneficiary Beneficiary
Client Client
When Original When Modified Net Reduction
Client Client in Income due
(Ascertained (Ascertained to CCM (In
Profit Shifted ... codes modifications so as to facilitate losses and profits to the
clients as per the requirement. He observed that the complete data of the client
client codes at the time of transactions. To rectify the error in
punching of client code, a facility known as 'Client Code Modification ... punching of client
codes. In order to rectify the punching of client code, a facility i.e.
Client Code Modification (in short CCM) is provided
client or broker
and that there was no intention of shifting of profit / losses, hence, the
AO held that client code modification to be malafide ... reason to believe that certain clients were benefited by
their brokers using the method of Client Code
Modification. The report to this effect
unique code which is
assigned by a broker to its clients. A broker can issued just one
code to a client. Client Code Modification means ... modification
of client code after the execution of trade.
Over a period of time, some persons, in connivance with brokers
started using Client Code Modifications
specify as to
what was the client code of the assessee and which was the client code
which was modified so as to generate ... which is the client code modifications which have been modified to
which transactions modifications have been done and when such
modifications have been done
error while typing the
client code. According to the Ld. representative, the assessee has
no knowledge about the client code modification by the broker ... brokers and few of the
clients of the said brokers across the country in respect of client
code modification. According
case of
the revenue that the assessee had resorted to any client code modification. All the
transactions were routed through recognized stock exchange with registered ... that the appellant has resorted to any client code modification. No client
code modification has been done/and all trades have been executed in appellant
taken into consideration:
Modification of the client codes is a practice under which brokers change the client codes in sale
and purchase orders of securities ... probe into
'modification of client codes' brokers, pursuant to observations by the Finance Ministry about
many such modifications taking place in derivatives transactions
provided certain client code modifications pertaining to future
and option segment with M/sSunchen Securities Ltd., a broker under the client code
No. NHM071 from ... Authorities. The Client Code is
allotted by the broker and not by the assessee. The Client cannot make modification
in client code and such things
Acit, New Delhi vs M/S. Sindhu Holdings Ltd., New Delhi on 5 January, 2018
