9911796707
TMI Blog2021 (4) TMI 1118X X X X Extracts X X X X X X X X Extracts X X X X ..... to as "the Act") relevant to the Assessment Year 2009-2010. 2. The assessee has raised the following grounds of appeal: 1. The learned Assessing Officer erred in law and on facts of the case in initiating reassessment proceedings u/s 147 of the Act. 2. The learned Assessing Officer has erred in making an addition of Rs. 12,67,380/- as income earned by the assessee on account of client code modification. 3. The learned Assessing Officer erred in law and on the facts in disregarding the contentions raised by the appellant in its letter dated 14/12/2016. 4. The learned Assessing Officer has erred in law and on facts while blankly relying on the information received from the DIT (Investigation), Ahmedabad and alleging on the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntention relied on various orders which are available in the paper book. 5. On the contrary, the learned DR contended that the reopening was made under section 147 of the Act on the basis of the information received from the investigation wing wherein it was pointed out that the assessee has diverted the profit by modifying its code maintained with the share broker. The learned DR in support of his contention has filed the written submission which are available on record. 6. We have heard the rival contentions of both the parties and perused the materials available on record. At the outset we note that the Hon'ble Punjab and Haryana High Court has decided the issue in favour of the Revenue in the case of Shri Rakesh Gupta Vs CIT reported ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nting to Rs.12,67,380/-. Accordingly the AO made the addition to the total income of the assessee. 9. Aggrieved assessee preferred an appeal to the learned CIT (A). 10. The assessee before the learned CIT (A) contended that the AO has not furnished the report received from the investigation which was used for the purpose of the addition of Rs.12,67,380/- on account of client code modification. 10.1 It was also submitted that the AO has not brought anything on record about the transaction which was modified and entered into the code of the other party. As such, the AO was to bring on record about the original transaction which was entered by the broker and subsequently modified. 10.2 There is no prohibition for the client code modificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... systematic manner to avoid taxes. The appellant has within the short span and after working hours has manipulated the loss arising to some other client to the account of the assessee. These circumstances raises doubts regarding the genuineness of the transactions. Considering the peculiar facts of the case the decision of the AO is justified and the addition made by the AO is confirmed. 12. Being aggrieved by the order of the learned CIT (A), the assessee is in appeal before us. 13. The learned AR before us filed a paper book running from pages 1 to 196 and submitted that the assessee has not shifted any profit by changing his code maintained with the broker. 14. On the other hand the learned DR before us vehemently supported the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that arises whether such client codes were modified at the instance of the assessee or there was some punching error at the end of the share broker. It is because the stock exchange permits the share broker to rectify the mistakes occurred while punching the data. If that be so, then there cannot be any fault which can be attributed to the assessee for the mistakes committed by the share broker. 15.3 Furthermore, the client code modifications give rise to the doubt/ suspicion which requires detailed investigations from the parties concerned to reveal the truth. Merely, there were client codes modifications carried out by the broker cannot the basis to draw an inference against the assessee. In fact, in the case of client code modification ..... X X X X Extracts X X X X X X X X Extracts X X X X
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