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2021 (7) TMI 132 - AT - Income TaxAddition of loss of client code modification - CIT-A deleted the addition - HELD THAT:- A perusal of assessment order reveals that the Assessing Officer has disallowed assessee's claim of loss arising out of client code modification purely on surmises and conjectures. In assessment order, the AO has comprehensively given modus operandi of brokers in generating non-genuine losses by misusing code modification facility. AO has failed to establish link between the loss claimed by the assessee on account of client code modification and non-genuine client code modification practices adopted by the brokers. AO has not given any cogent reason to reject explanation offered by the assessee on loss resulting from client code modification. AO in entire assessment order has not named the broker who was instrumental in providing bogus client code modification entry to the assessee. Not emanating from the assessment order whether any search/survey or any other investigative enquiry was made on the broker from whom it is alleged that the assessee has obtained fictitious entry of loss arising from client code modification. The observations made by AO are generic and not specific to the assessee. CIT(A) has deleted addition inter alia for the reasons: the Assessing Officer has made addition in the absence of cogent evidence against the assessee and no adverse finding with regard to fictitious losses incurred and claimed by the assessee. - Decided against revenue.
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