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2019 (2) TMI 109 - ITAT DELHIReopening of assessment u/s 147 - assessee has misused the facility of client code modification provided to stock brokers to avail contrived loss - Held that:- We find the AO, on the basis of the information received in the shape of the report of the Investigation Wing of Ahemdabad, reopened the assessment u/s 147 on the ground that assessee has misused the facility of client code modification provided to stock brokers to avail contrived loss. There is no dispute to the fact that the assessee in the instant case has traded at the stock exchange through the broker M/s. Gaurav Investment and Consultancy Private Limited. There is also no dispute to the fact that the Assessing Officer during the course of assessment proceedings has called for certain information from the said broker who has replied to the queries raised by the Assessing Officer in response to notice u/s 133 (6) and there is no allegation by the Assessing Officer in his findings that there was any connivance between the assessee and the broker. Since in the instant case action has been taken us/ 147 after completion of the assessment u/s 153A/ 143 (3) on the basis of report of the Investigation Wing and the Assessing Officer has not conducted any enquiry on the same, therefore, hold that reassessment proceedings initiated in the instant case are not in accordance with law. Accordingly the same is quashed. Since the assessee succeeds on the legal ground, the grounds of appeal challenging the addition on merit become academic in nature for which these are not being adjudicated. - Decided in favour of assessee.
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