Mohan Aggarwal Vs ACIT (ITAT Delhi)
Conclusion: Reassessment under section 147 on the basis of report of Investigation Wing without conducting further enquiry on the same was invalid and liable to be set aside.
Held:
AO received information from the Investigation Wing that as per analysis of the data received from the national stock exchange and information provided by stock brokers, assessee had misused the facility of Client Code Modification (CCM) provided to the stock brokers to avail contrived loss. Accordingly, AO reopened assessment and made addition. Since in the instant case, action had been taken us/ 147 after completion of the assessment u/s 153 A/ 143 (3) on the basis of report of the Investigation Wing and AO had not conducted any enquiry on the same, therefore, reassessment proceedings initiated were not in accordance with law.
FULL TEXT OF THE ITAT JUDGEMENT
1. This appeal filed by the assessee is directed against the order dated 09.02.2018 of the CIT(A)-26, New Delhi relating to A. Y. 2009-10.
2. Facts of the case, in brief, are that the assessee is an individual and derives income from salary, house property, capital gain and income from other sources. He filed his return of income on 07.07.2009 declaring total income of Rs.9,84,190/-. The said return was processed u/s 143 (1) of the IT Act. Thereafter, search action u/s 132 of the IT Act was carried out in the case of the assessee on 17.12.2013 and the order was passed u/s 153 (A) r.w.s 143 (3) on 28.03.2016. Subsequently, the Assessing Officer received information from the Investigation Wing, Ahemdabad vide letter dated 17.03.2016 that survey action u/s 133 A of the IT Act was conducted by the investigation wing of Ahemdabad at the business premises of 12 stock brokers across India on 23.03.2015. As per analysis of the data received from the national stock exchange and information provided by the stock brokers, the ADIT (Investigation) came to the conclusion that the assessee has misused the facility of Client Code Modification (CCM) provided to the stock brokers to avail contrived loss of Rs.31,90,855/-. The details of all the transactions original as well as modified was provided by the investigation wing are as under :-
