Is every equity transactions (buy/sell) fetched from broker sent to IT department or are they only for quicko to calculate gains ?
Since your broker has your PAN details and the ITD gathers data from various agencies (such as CDSL/ NSDL, RTA, Banks, SEBI etc) and prepares the AIS, the ITD technically has all the data of you from your PAN.
Quicko uses all the transactions in order to calculate your capital gain/loss.