9911796707
TMI Blog2022 (9) TMI 1094X X X X Extracts X X X X X X X X Extracts X X X X ..... are of the view that the AO could not have disallowed the loss claimed by the assessee. Accordingly, we quash the orders passed by the tax authorities. Appeal filed by the assessee is allowed. - I.T.A. No. 1593/Mum/2021 - - - Dated:- 21-9-2022 - Shri B.R. Baskaran (AM) Shri Pavan Kumar Gadale (JM) For the Assessee : Shri Vishnu Agarwal For the Department : Shri Manoj Sinha ORDER PER B.R.BASKARAN (AM) :- The assessee has filed this appeal challenging the order dated 12.08.2021 passed by Ld CIT(A), National Faceless Appeal Centre, Delhi and it relates to the assessment year 2009-10. The assessee is aggrieved by the decision of Ld CIT(A) in confirming the addition relating to disallowance of loss in trading i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f loss claimed by the assessee is liable to be deleted. The Ld CIT(A) did not agree with the contentions of the assessee and accordingly confirmed the order of the AO. Aggrieved, the assessee has filed this appeal before the Tribunal. 4. The Ld A.R submitted that the assessee has carried out share trading transactions with four brokers, out of which the transactions entered with one broker was held to be bogus. He submitted that the AO has accepted the trading transactions entered with other brokers. He submitted that the assessee has made a turnover of Rs.95.26 crores, out of which there were loss in certain transactions and profit in other transactions. Considering the overall activities of the assessee, there is no reason to suspect t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enerated fictitious loss. It is stated that the assessee is a beneficiary of client code modification, which has resulted in loss. The question as to whether the information received regarding client code modification could be a reason for reopening of assessment was examined by the Hon ble Bombay High Court in the case of Coronation Agro Industries Ltd (supra) and it was held as under:- (3) The reasons in support of the impugned notice relies upon the information received from the Principal Director of Income Tax that the petitioner has benefited from a client code modification by which a profit of Rs.22.50 lakhs was shifted out by the petitioner s broker, resulting in reduction of the petitioner s taxable income. The only basis for fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not reason to believe that income chargeable to tax has escaped assessment. 5. In the above view, prima facie, we are of the view that the impugned notice is without jurisdiction as it lacks reason to believe that income chargeable to tax has escaped assessment. The facts in the present case are identical with the facts in the case decided by Hon ble Bombay High Court. Accordingly, we hold that the reopening of assessment is bad in law. On merits also, we notice that the claim of the assessee is duly supported by various evidences and further the code modifications carried out by the stock broker should not affect the claim of the assessee unless it is proved that the assessee has colluded with the stock broker in carrying out the m ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
