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2021 (2) TMI 935 - AT - Income TaxValidity of reopening of assessment u/s 147 - Undisclosed client code modification - assessee provided fictitious loss to different clients as well as fictitious profit to other clients - HELD THAT:- Reasons recorded clearly indicate that the reopening of assessments is on the basis of a letter received from DDIT (Inv.), Ahmedabad, wherein, it is alleged that some brokers are misusing the client code modification facilities to benefit their clients and in the process received commission varying between 0.5% to 2% of the amount of loss/profit transferred to the respective clients. It is noticed, on the basis of identical reasoning in assessee’s own case for the assessment year 2010-11, assessment was reopened u/s 147 of the Act. The Tribunal while deciding the issue [2020 (2) TMI 1455 - ITAT MUMBAI] following the decision of Hon’ble Bombay High Court in case of M/s Coronation Agro Industries Ltd. vs. DCIT. [2017 (1) TMI 904 - BOMBAY HIGH COURT], held the reopening of assessment as invalid and accordingly, quashed the assessment orders. Reopening of assessment is invalid - Decided in favour of assessee.
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