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TMI Blog2022 (9) TMI 1094X X X X Extracts X X X X X X X X Extracts X X X X ..... so challenging the validity of re-opening of assessment u/s 147 of the Act. 2. The facts relating to the above said issue are stated in brief. The assessee is an individual and is a trader and investor in shares and commodities. During the year under consideration, he had incurred loss of Rs.1,24,17,318/- in trading in shares and commodities. The AO received information from Investigation wing of Income tax department, Ahmedabad that the assessee has obtained fictitious transactions to generate loss of Rs.1,24,17,318/-. Hence the AO reopened the assessment by issuing notice u/s 148 of the Act on 29-03-2016. The AO completed the assessment to the best of his judgement u/s 144 of the Act by disallowing the above said loss. 3. In the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion happens at the end of the stock broker and the assessee is no way related to the same. Further, the client code modification is carried out to correct the usual human error and such kind of modifications upto certain level is also permitted by SEBI. The Ld A.R further placed his reliance on the decision rendered by Hon'ble jurisdictional Bombay High Court in the case of Coronation Agro Industries Ltd (2017)(82 taxmann.com 75)(Bom), wherein the Hon'ble Bombay High Court held that the client code modification done by assessee's broker could not be ground to believe that there had been any escapement of income. Accordingly, the Ld A.R submitted that there is not reason to suspect the loss declared by the assessee and in any case, the reop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication of mind to the report of the Assessing Officer along with the record available with him. This information and application of mind has led the Assessing Officer to form a reasonable belief that there is not only an escapement of income but there has been failure to truly and fully disclose all material facts and information as the modus operandi of shifting profits was not known to the Revenue as not disclosed by the petitioner when the Assessing Officer passed the order in regular assessment proceedings. (4) We note that the reasons in support of the impugned notice accept the fact that as a matter of regular business practice, a broker in the stock exchange makes modifications in the client code on sale and/or purchase of any sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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