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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 ..... acie the said client code modification was because of some malafide reason and the assessee has received cash in lieu of payment made for loss and profit in which client code modification was involved. Thus, the above recording does not satisfy requirement of law mandatory for assuming jurisdiction to reopen the assessment. My above view is supported by the decision of the Bombay High Court in the case of Coronation Agro Industries Ltd. Vs. DCIT [ 2017 (1) TMI 904 - BOMBAY HIGH COURT] - Therefore, the reassessment order passed pursuant to the above recording is hereby quashed and ground of the appeal of the assessee is allowed. - ITA No. 6806/Del/2017 - - - Dated:- 23-1-2019 - SHRI N.S. SAINI, ACCOUNTANT MEMBER For the Appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (3)/Ahemdabad vide letter dated 11.03.2016 that certain brokers has misused client code modification facility of transfer of loss on account of share transaction from one account to the other to reduce the tax liability in the hands of the beneficiary clients and that the assessee Sh. Tulsi Dass is also one of the beneficiary during the financial year 2008-09 through client code modification route. On the basis of this information the Assessing Officer recorded the reasons to believe to initiate proceedings u/s 147 of the IT Act. It is observed from the reasons that the Assessing Officer has analysed the information received from ADIT (Investigation) and verified the same from the income tax return of the assessee for A. Y. 2009-10. 5. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reason to believe before initiating the proceedings u/s 147. The Assessing Officer has recorded his own satisfaction on the basis of information received on verification of the same from return filed by the assessee. The contention of the assessee there is no material or document on the basis of which he concluded that client code modification has been done, is also not sustainable. At the stage of initiating proceedings u/s. 147 the Assessing Officer is not required to provide the material or documents to the assessee. The Assessing Officer has given copy of note sheet containing the reasons recorded alongwith the satisfaction note of the Principal CIT in connection with the proceedings the initiated u/s 147 which is sufficient compliance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SI. No Pan no. Name of the beneficiary Name of Beneficiary Client Address of Beneficiar Name of broker Ascertained profit Shifted out Ascertained losses shifted Net reduction income due CCM 1. ACJPD7746H TULSI DASS CR -204- LALITA PARK LAXMI NAGAR DELHI-110092 MODEX InternatIonal Securities Ltd. 1420202.5 477732.5 (-) 1897935 The information received was examined with reference to the return of income filed by the asseessee. On perusal of the ITR filed by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of some malafide reason and the assessee has received cash in lieu of payment made for loss of Rs.4,77,732.50/- and profit of Rs.14,20,202.5 in which client code modification was involved. Thus, the above recording does not satisfy requirement of law mandatory for assuming jurisdiction to reopen the assessment. My above view is supported by the decision of the Bombay High Court in the case of Coronation Agro Industries Ltd. Vs. DCIT reported in 390 ITR 464. Therefore, the reassessment order passed pursuant to the above recording is hereby quashed and ground of the appeal of the assessee is allowed. 9. As I have set aside the reassessment order passed for the year under appeal, therefore, the other grounds of appeal taken by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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