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TMI Blog2019 (1) TMI 1985X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings u/s 147/148 of the Income-tax Act, 1961 (the act) without there being any cogent material leading to the believe of escapement of any income : 2. Passing the order u/s 147/143(3) of the Act at an income of Rs.28,47,345/- against the returned income in a sum of Rs.9,49,309/-. 3. Passing the order u/s 147/143(3) of the Act without disposing of the objections to the initiation of reassessment proceedings u/s 147/148 of the Act; 4. Making an addition of Rs.18,97,935/- by disallowing genuine loss suffered on share trading treating the same as contrived on account of client code modification." 3. In ground No.1 of the appeal the assessee has challenged the reopening of assessment u/s 148 of the Act being without cogent material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the assessee as per details of scrips in the assessee's account. The Assessing Officer observed that the assessee has shown profits and gains from the business other than speculative at only Rs.10,05,287/-. Considering the above information and observations recorded from the analysis of the income tax return filed by the assessee the Assessing Officer had reason to believe that income to the tune of Rs.18,97,935/- chargeable to tax has escaped assessment which needs to be assessed/reassessed. The contention of the assessee that proceedings were initiated under reason to suspect and not reason to believe is not sustainable from the analysis given by the Assessing Officer on the basis of information received and verification of the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 7. On the other hand the Ld. DR fully justified the order of the CIT(A). 8. I have heard the rival submissions and perused the orders of the lower authorities and materials available on record. In the instant case the facts of the case are that for the A. Y. 2009-10 the assessee had filed return income u/s 139 of the Act on 29.09.2009. The said return was accepted u/s 143 (1) of the Act. Thereafter the assessment for the aforesaid year was reopened by the recording the following reasons for reopening on 27.04.2016. "The department is in possession of information that some brokers had misused client code modification facility (in short "CCM") to transfer loss and profits on account of share transactions from the client to the other. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this income needs to be assessed/reassessed u/s 147 of the Act. I am satisfied that it is fit case for issue of notice u/s 148 of the IT Act. 1961. 9. On perusal of the above recording shows that this was not at all a reason to believe envisaged u/s 147 of the Act. At best the same can be considered as reason to suspect only. The recording states that the assessee Sh. Tulsi Dass has suffered a loss of Rs.4,77,732.50/- in a transaction in which client code modification was involved and earned profit of Rs.10,05,287/- in a transaction in which client code modification was involved. However, there is no material on record to show that prima facie the said client code modification was because of some malafide reason and the assessee has recei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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