Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (1) TMI 1985 - AT - Income TaxReopening of assessment u/s 147 - Reason to believe or reason to suspect - disallowing genuine loss suffered on share trading treating the same as contrived on account of client code modification - HELD THAT:- As recording shows that this was not at all a reason to believe envisaged u/s 147 of the Act. At best the same can be considered as reason to suspect only. The recording states that the assessee Sh. Tulsi Dass has suffered a loss in a transaction in which client code modification was involved and earned profit- in a transaction in which client code modification was involved. However, there is no material on record to show that prima facie the said client code modification was because of some malafide reason and the assessee has received cash in lieu of payment made for loss and profit in which client code modification was involved. Thus, the above recording does not satisfy requirement of law mandatory for assuming jurisdiction to reopen the assessment. My above view is supported by the decision of the Bombay High Court in the case of Coronation Agro Industries Ltd. Vs. DCIT [2017 (1) TMI 904 - BOMBAY HIGH COURT] - Therefore, the reassessment order passed pursuant to the above recording is hereby quashed and ground of the appeal of the assessee is allowed.
|