Reassessment based on mismatched alleged entry characteristics failed where intraday trading profit was already offered to tax.

Reassessment based on alleged entries involving capital gains, capital losses or business losses was unsustainable because the transaction was intraday share trading that generated business profit already offered to tax and did not match the alleged entry characteristics. The Tribunal treated the recorded basis for reopening as factually incorrect and deleted the addition for unexplained cash credit. The High Court regarded those findings as factual and found that no substantial question of law arose, leaving the Tribunal's decision in favour of the assessee undisturbed.

---

---

Issues: Whether the Tribunal's quashing of reassessment and deletion of the addition for alleged unexplained cash credit gave rise to a substantial question of law.

Analysis: The recorded basis for reopening alleged entries involving long-term capital gain, short-term capital loss or business loss exceeding the monetary threshold. The assessee's transaction was, however, an intraday share-trading transaction yielding business profit of Rs. 49,792, which had been offered to tax, and did not contain any of the alleged entry characteristics. The Tribunal therefore found that the basis for reopening failed. The High Court found these to be factual findings and, having regard also to the small amount involved, found no substantial question of law warranting interference.

Conclusion: The reassessment was unsustainable and no substantial question of law arose from the Tribunal's decision; the issue was decided in favour of the assessee.

---