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2019 (1) TMI 854 - AT - Income TaxReopening of assessment - client code modification - eligibility of reasons to believe - Held that:- It 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. In the recording the Assessing Officer has admitted that client code modification is legally permissible in case of mistake. Further the recording states the assessee M/s. Prashant Agencies Pvt. Ltd. has suffered a loss of ₹ 2,07,040/- in a transaction in which client code modification was involved. Similarly in the case of M/s. PPN Properties Private Limited recording states that the assessee has suffered a loss of ₹ 2,47,312/- 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 of ₹ 2,07,040/- in the case of M/s. Prashant Agencies Pvt. Ltd. and ₹ 2,47,312/- in the case of M/s. PPN Properties Private Limited. Thus, the above recording does not satisfy requirement of law which is mandatory for assuming jurisdiction to reopen the assessment. My above view is supported by decision of Coronation Agro Industries Limited Vs. DCIT [2017 (1) TMI 904 - BOMBAY HIGH COURT]. Therefore, the reassessment orders passed pursuant to the above recording are hereby quashed and ground of appeals of the assessee is allowed.
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