GCK Stock Private Limited Vs ITO (ITAT Jaipur)
ITAT Jaipur held that reopening under section 148 r.w.s. 148A is bad-in-law and liable to be quashed in as much as reopening was merely on the basis of change of opinion. Accordingly, appeal of assessee allowed and reopening quashed.
Facts- The firm is a trader in securities market. There was credible information with the Department that the assessee was engaged in reversal trades in illiquid Stock Options leading to pre-meditated loss of Rs. 4,96,87,796/-. It was gathered from the information that the assessee has executed many non-genuine trades in unique contracts Hence the case was reopened after following the due proceedings u/s 148A and the case was taken up for complete scrutiny. Notably, AO passed the assessment order u/s. 147 r.w.s. 144B and assessed total income of Rs. 5,00,65,190/-thereby making disallowance / addition of Rs. 4,96,87,796/-.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that we are inclined agree with the contention of the AR that firstly this tantamount change of opinion of the same facts as above said and secondly that was no failure on the part of the assess to furnish all the details of the illiquid stock and reversal of trades. Accordingly we find that the case of the assessee is very much covered by the judgement of Seema Gupta (SUPRA) which reconfirms the ratio of Kelvinator of India Ltd. (SUPRA) that no reopening can be conducted merely on the base of change of opinion. We have also perused the judgements relied upon by the Learned Authorised Representative of the assessee in connection with mechanical approval, disclosure of primary facts, lack of inquiry etc. are clearly applicable of fact of the case. Accordingly we find that the contention of the assessee the notice u/s. 148 r.w.s 148A is bad in law and accordingly hereby quashed.
