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2023 (4) TMI 530 - AT - Income TaxReopening of assessment u/s 147 - Income escaped pertaining to the transaction of fictitious losses - HELD THAT:- As assessee had categorically stated that it had not incurred any loss in F&O Segment either in the sum of Rs.10,09,250/- or 20,18,500/-. This is also evident from the ledger account of IMSPL maintained by the assessee which is placed on record before the Ld. AO. This fact is further evident from the ledger account of assessee as maintained in the books of account of IMSPL which was also placed on record before the Ld. AO. All these facts collectively go to prove that even on merits, there is no case made out by the Revenue that assessee had incurred fictitious losses on either Rs.10,09,250/- or Rs.20,18,500/-. On the contrary, the assessee had made actual profit on 73,40,121/- which was duly offered to tax from the F&O Segment. Hence, we have no hesitation to hold that the reopening made suffers from various legal infirmities and deserves to be quashed. Even on merits, there is no case made out by the Revenue and hence, the addition made in the sum is hereby deleted. Accordingly, Grounds No.1, 3 and 4 raised by the assessee are allowed.
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