Case Law Details
Ravi Gopal Trivedy Vs National-e-Assessment Centre Delhi (ITAT Mumbai)
ITAT Mumbai held that reopening of assessment u/s 147 without recording any specific reasons and without linking the information received from DDIT(Inv) specifically to assessee is invalid and liable to be set aside.
Facts- The assessment of the assessee was reopened by issue of notice u/s. 148 for the reason that certain information was received from DDIT(Inv), Mumbai in the course of investigation in National Stock Exchange Ltd with regard to the issue of Client Code Modification in the case of few brokers and based on a statement of Shri Chetan pitamber Bharkhada, President Anand Rathi Commodities Ltd(ARCL) who did the maximum client code modification was recorded.
AO came to the conclusion that certain losses of the assessee are speculative losses and not allowed to be set off against normal business income and that the assessee has not disclosed fully and truly all material facts in the return of income and, therefore, had a reason to believe that an income to the extent of Rs.17,40,120/- has escaped assessment. AO concluded the assessment stating that the share transaction done by the assessee are bogus in nature and not genuine. AO made the addition of Rs.17,40,120/- for this reason and also for the reason that the assessee has not furnished any details.
Aggrieved, the assessee preferred appeal before the CIT(A), however, the same was dismissed. Being aggrieved, the present appeal is filed.
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