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TMI Blog2021 (7) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;s claim of loss. In First Appellate proceedings, the CIT(A) has deleted the addition without appreciating the fact that the assessee has failed to establish genuineness of the transaction. The assessee in connivance with the broker has misused client code modification facility to reduce taxable income by claiming fictitious loss. 3. Ms. Shefali appearing on behalf of the assessee submitted that the assessee is engaged in trading/investment of shares, securities mutual funds, etc. In the return of income for assessment year 2009-10, the assessee has declared total income of ₹ 18,37,850/-. The assessment in the case of assessee was reopened only for the reason that the assessee has allegedly benefited from client code modification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Revenue in appeal is against relief granted by the CIT(A) in deleting addition of ₹ 2,00,195/- on account of client code modification. A perusal of assessment order reveals that the Assessing Officer has disallowed assessee's claim of loss of ₹ 2,00,195/- arising out of client code modification purely on surmises and conjectures. In assessment order, the Assessing Officer has comprehensively given modus operandi of brokers in generating non-genuine losses by misusing code modification facility. However, the Assessing Officer 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. The Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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