2025 (6) TMI 1465

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.... 2012-13. The assessee has filed Cross Objections in appeal filed by the Revenue. ITA No. 4145/Del/2024 for AY 2012-13 2. The Revenue in appeal has raised following grounds assailing findings of the CIT(A):- "(i) "Whether in facts and circumstances of the case and in law, the Ld. CIT(A) has erred in not appreciating that information received from investigation wing is valid piece of evidence on the basis of which reopening can be done" (ii) "Whether on facts of the case and in law, the Ld. CIT(A) has erred in ignoring the fact that it was evidently established by the Investigation wing that assessee was one of the beneficiaries in the Client Code Modifications" (iii) "Whether in facts and circumstances of the case and in law, the Ld....

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....n unauthorized Client Code Modification (in short CCM) in respect of the transactions carried out during the relevant period. The AO made addition of Rs. 2,96,33,125/- in respect of the CCM carried out by the assessee to reduce the profits and tax liability. The assessee carried the issue in appeal before the CIT(A), assailing findings of the Assessing Officer in assessment order dated 22.11.2019 passed u/s. 147/143(3) of the Act, inter alia challenging reopening of assessment as well as addition made by the AO on account of CCM. The CIT(A) has earned not only in holding reopening invalid but also deleted the addition on merits. The ld. DR prayed for upholding the assessment order and reversing findings of the CIT(A). 4. Per contra, Shri V....

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.... the Act comes into play. According to first proviso to section 147 of the Act, assessment cannot be reopened unless the AO specifies that income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to "disclose fully and truly all material facts" necessary for his assessment. In the instant case the observation of the Assessing Officer with regard to absence of assessee not disclosing truly and fully all material facts is conspicuously missing. The assessment order is too shallow that even the Assessing Officer has not mentioned the name of the brokers through whom transactions were carried out by the assessee at NSEL. Further, the AO has not even carried out the exercise of....

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.... is also different from the broker mentioned in the reasons recorded M/s Anand Rathi Commodities Ltd. The arbitrary nature of the AO's order can further be gauged by the fact that the AO had accepted the profit figures which the appellant earns from transaction on NSEL, profit from trades in which CCM were carried out being already included in this figure, but has than added the value of the sale/ purchase of certain trades, alleging them as income from other sources. 9.4. During the reassessment proceedings, the appellant had furnished complete details of transactions wherein CCM was carried out, which has neither been doubted nor any error/discrepancy been pointed by the AO. In this regard, the addition in an arbitrary manner was no....