TMI Blog2019 (10) TMI 398X X X X Extracts X X X X X X X X Extracts X X X X ..... N.C. CABLES LTD. [ 2017 (1) TMI 1036 - DELHI HIGH COURT] mere appending of the expression 'approved' says nothing. It is not as if the CIT (A) has to record elaborate reasons for agreeing with the noting put up. At the same time, satisfaction has to be recorded of the given case which can be reflected in the briefest possible manner. In the present case as both the approving authorities have given the approval in a mechanical manner, the reassessment proceedings are not in accordance with law Addition on account of client code modification to be deleted as relying on PAT COMMODITY SERVICES PVT. LTD. [ 2019 (2) TMI 720 - BOMBAY HIGH COURT] - Decided in favour of assessee. - ITA No.794/Del/2019 - - - Dated:- 7-10-2019 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... securities and had claimed the same as exempt. Since the assessee has earned capital gain of ₹ 4,39,342/- and claimed the same as long term capital gain exempt from tax, the Assessing Officer held the same to be non genuine and accordingly made addition of ₹ 4,39,342/-. 4. In appeal the CIT(A), relying on various decisions, upheld the action of the Assessing Officer. Aggrieved with such order of the CIT(A), the assessee is in appeal before the Tribunal. 5. The Ld. Counsel for the assessee referring to page-12 of the paper book drew the attention of the bench to column No.12 where the PCIT had simply mentioned satisfied . Referring to clause No.11 of the form he submitted that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le. 7. The Ld. DR on the other hand heavily relied on the order of the AO and CIT(A). 8. I have considered the rival arguments made by both the sides and perused the orders of the authorities below. I have also considered the various decisions cited before me. I find the Assessing Officer, on the basis of report of the investigation wing of the department, reopened the assessment and made addition of ₹ 4,39,342/- on account of client code modification through broker which has been upheld by the CIT(A). It is the submission of the Ld. Counsel for the assessee that the reopening was made in a mechanical manner without application of mind by the Assessing Officer and on borrowed satisfac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nale for the safeguard of an approval by a higher ranking officer. For these reasons, the Court is satisfied that the findings by the ITAT cannot be disturbed. 9.2 The Hon ble M. P. High court in the case of CIT Vs. S. Goyanka Lime Chemicals Ltd. (supra) has held as under :- 7. We have considered the rival contentions and we find that while according sanction, the Joint Commissioner, Income Tax has only recorded so Yes, I am satisfied . In the case of Arjun Singh (supra), the same question has been considered by a Coordinate Bench of this Court and the following principles are laid down:- The Commissioner acted, of course, mechanically in order to discharge his statutory obligatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so both the approving authorities have given the approval in a mechanical manner, therefore, in the light of the ratio laid down by the decisions cited (supra) and the other decisions filed in the case law compilation, the reassessment proceedings in my opinion are not in accordance with law. Therefore, the same is liable to be quashed. I, therefore, quash the reassessment proceedings. 10. Even otherwise on merit also, so far as the addition on account of client code modification is concerned I find the Hon ble Bombay High Court in the case of PAT Commodity Services (supra) has observed as under :- 3.The respondent assessee is a private limited company engaged in the Business of providing Commodity servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee in the process, be it in the nature of commission or otherwise. In the present case, the Assessing Officer has added the entire amount of doubtful transactions by way of assessee's additional income, which is wholly impermissible. We do not know the fate of the individual investors in whose cases, the Revenue could have questioned the artificial losses. Be that as it may, we do not think entertaining these appeals would serve any useful purpose. 4.In the result, both the appeals are dismissed. 11.Respectfully following the decision of Hon ble Bombay High Court cited (supra). I hold that the addition made by the Assessing Officer and sustained by the CIT(A) on account of client codes mod ..... X X X X Extracts X X X X X X X X Extracts X X X X
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