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2020 (2) TMI 1455 - AT - Income TaxReopening of assessment u/s 147 - Reason to suspect or reason to believe - transactions involving client code modification (CCM) through its broker on NSE in F & O segment - HELD THAT:- In the case of M/s Coronation Agro Industries Ltd. vs. DCIT [2017 (1) TMI 904 - BOMBAY HIGH COURT]has decided the identical issue in favour of the assessee and held the notice issued u/s 148 of the Act lacks reason to believe that the income chargeable to tax has escaped assessment The reasons do not indicate the basis for the Assessing Officer to come to reasons do not indicate the basis for the Assessing Officer to come to reasonable belief that there has been any escapement of income on the ground that the modifications done in the client code was not on account of a genuine error, originally occurred while punching the trade. The material available is that there is a client code modification done by the Assessee’s broker but there is no link from there to conclude that it was done to escape assessment of a part of its income. Prima facie, this appears to be a case of reason to suspect and not reason to believe that income chargeable to tax has escaped assessment. - Decided in favour of assessee.
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