2011 (4) TMI 1349

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....t Years 2002-03 and 2003-04 vide his order dated 30.09.2009. 2. The only issue in these appeals of the revenue is as regards to the order of CIT(A) annulling the assessment completed u/s. 147 r.w.s. 143(3) of the Act. For this, revenue has raised common grounds and the grounds as raised in ITA No.1415/K/2010 for Assessment Year 2002-03 read as under: "1. That the Ld. CIT(A),C-1, Kol has erred in annulling the assessment completed by the A.O. u/s. 147/143(3) of the I. T. Act, 1961. 2. That, the Ld. CIT(A) has erred in holding that re-opening of the assessment suffered from change of opinion in absence of fresh materials. 3. That, the Hon'ble Supreme Court in the case of Bhanji Lavji 79 ITR 582 has otherwise held that if the A.O. ....

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....incurred direct loss of Rs. 51,85,073/- in the business of purchase and sale of shares & securities (mainly in shares), the computation is as under: Sale (excluding orchard sale)     Rs. 60,20,887/- Less: Purchase Rs.80,70,160/-     Decrease in stock Rs. 30,29,466/- Rs.1,10,99,626/-         Loss : Rs. 50,78,739/-   From the details, it is seen that there was profit of Rs. 1,06,344/- in purchase and sale of Mutual Funds. Therefore, the loss in the business of purchase and sale of shares is Rs. 50,78,739/- plus Rs. 1,06,334/- = Rs. 51,85,073/-. The exceptions provided in the Explanation below section 73 are not available to the assessee co....

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....ng and CIT(A) quashed the reassessment notice by holding as under: "3.1. I have carefully considered the submission of the Ld. A.R. Now the law is well settled that the reopening of an assessment beyond the four year time limit is not possible where the assessee had disclosed all material facts along with the return filed. In the case under consideration reassessment notice has been issued after four years to disallow the speculation loss not eligible for set off against the other incomes. In the case under consideration original order was passed under section 143(3) of the Act and details of purchase and sale was duly filed by the assessee. Hence it cannot be said that the material facts were not fully and truly disclosed by the a....

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.... the case. We find from the arguments of both the sides as well as the reasons recorded, which do not indicate that there was any violation on the part of the assessee to disclose fully and truly all material facts necessary for the assessment of the assessee made u/s. 143(3) of the Act. We find that the Assessing Officer while framing original assessment u/s. 143(3) of the Act vide order dated 28.3.2005 definitely considered the facts and circumstances as well as the issue of applicability of explanation to section 73 of the Act. From the details of share trading business as contained in the accounts were filed along with the return of income and further details of purchases of shares were filed by the assessee to Assessing Officer during ....