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2011 (9) TMI 225 - AT - Income TaxReassessment - Futures & Options loss - speculation loss or not - The assessee is a Hindu Undivided Family deriving share income / loss from a partnership firm and loss from share trading and income from other sources - The Assessing Officer has also referred to the fact that the Futures & Options transactions are not delivery based and therefore they are covered by the definition of a "speculative transaction" under section 43(5) of the Act. But the Assessing Officer himself has accepted these transactions to be non-speculative in nature and as being hedging transaction within the meaning of clause (b) of the proviso while completing the original assessment - The mere fact that the transactions were not delivery based, does not amount to tangible material because even during the original assessment proceedings it was known to the Assessing Officer that these transactions were not delivery based - Unless there is tangible material to show that the character of the F&O transactions is not that of hedging transactions, the reopening of the assessment cannot be sustained. Till such tangible material is available to the Assessing Officer, the reopening is vulnerable to the challenge of being a mere review of the earlier assessment - Therefore, the notice under section 148 has been issued on a mere change of opinion - The reassessment is therefore invalid.
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