TaxTMI 
TaxTMI 
2025 (5) TMI 2147
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....h lead to reopening of the assessment. The reopening of the assessment is bad in law after the period of four years. 2. On facts and circumstances of the case and in law the learned CIT(A) erred in not accepting the fact that there were no sufficient tangible materials were available before AO to believe that income has actually escaped the assessment for the purpose of initiating reassessment proceedings under Section 148 of the Act. 3. On facts and circumstances of the case and in law the learned CIT(A) has failed to appreciate the submissions of the Appellant that Client Code Modification (CCM) was done by commodity broker suo moto and without the knowledge or instructions of the Appellant and there is no involvement of the appellant. 4. a) On facts and circumstances of the case and in law the learned CIT(A) erred in making addition of entire gross sale value of commodity transactions Rs. 1,09,73,250/- as unexplained cash credit under Section 68 of the Act without considering the investment made of Rs. 1,07,43,750/- and having declared profit of Rs. 2,29,500/-. b) On facts and circumstances of the case and in law, the declared profit of Rs. 2,....
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....REASONS FOR RE-OPENING U/S, 147 OF THE INCOME TAX ACT, 1961 In this case, the assessee has filed his return of income for the A.Y.2012-13 declaring total income of Rs. 7,07,823/- on 30.03.2013. subsequently, the case was selected for scrutiny under CASS for the year under consideration and assessment was completed u/s 143(3.) of the IT Act on 04.03.2015 assessing total income at Rs. 08,05,020/-. 2. The Serious Fraud Investigation Office (SFIO) has prepared a detailed report on National Spot Exchange Ltd. (NSEL) scam which has been shared with the Income Tax Department. This information was received from DDIT(Inv), Unit-6(3), Mumbai vide No. DDIT(Inv)-6(3)/Information/2018-19 dated 15.03.2019 on 16.03.2019 through email. In this report, the findings of SFIO is that the brokers have performed rampant client code modification where, the dummy/ghost client code were used to book trades and later the client codes were modified. Following the detection of misuse and exploitation of NSEL Exchange platform by unscrupulous brokers/traders, the trading on the NSEL Exchange platform had been suspended from 01.04.2012 till 31.07.2013. At the time of suspension of tra....
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....ssee was thoroughly examined after considering the financial statements. The profit and loss account for the year under consideration at the time of the original assessment proceedings is as under:- ***This space has been left blank intentionally. P.T.O.*** 5.1. The contract notes under consideration are as under:- 5.2. The purchase and sale transaction mentioned in the aforementioned contract notes are part of the purchase and sales reflected in the profit and loss account of the assessee. Since all the details were furnished at the time of the original assessment proceedings, it cannot be said that there was any failure on the part of the assessee to disclose truly and fully all material facts relating to the assessment. 6. Since the reopening is of more than four years from the end of the relevant assessment year, first proviso to Section 147 of the Act, squarely applies, which read as under:- "Income escaping assessment. 147. If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income an....
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.... to disclose all material facts as the Respondent No.1 had specifically sought details as regard the relevant expenditure and which were furnished. He relied upon the decision of the Apex Court in the case of Gemini Leather Stores v. ITO [1975] 100 ITR 1, to contend that the duty of the assessee was to place on record all the primary facts and drawing of inference from the primary facts is upto the Assessing Officer. However, this issue need not be gone into in depth any further, as the Petitioner is entitled to succeed on the first ground mentioned above. 12. In the circumstances, the Petitioner is entitled to the reliefs prayed for in the Petition. It will have to be held that the Respondent No.1 had no jurisdiction to proceed with the impugned reassessment proceedings." 8. Similarly, in the case of Sound Casting (P) Ltd. vs. DCIT [2012] 250 CTR 119 (Bombay), the Hon'ble High Court of Bombay held as under:- "Held that the reopening of the assessment had admittedly taken place beyond a period of four years from the end of the relevant assessment year. There was no allegation in the reasons which had been disclosed to the assessee that there was any failure on ....