M/S SHREE BAHUBALI CORPORATION LIMITED,KOLKATA vs. I.T.O.,WARD-3(3), KOLKATA

The assessee’s twin substantive grounds raised in the instant appeal challenge validity of reopening and correctness of both the lower authorities’ action treating his derivative loss amounting to Rs.1,17,450/- as a bogus on account of client code modification. Learned counsel does not press for assessee’s former substantive ground. Coming to latter grievance, his only case as per his paper book running into 36 pages is that this assessee has nowhere made any client code modification either himself or through his broker. The Revenue’s case, in the other hand, is that since the Assessing Officer came across the alleged client M/s. Shree Bahubali Corporation Ltd. medication, the impugned addition has rightly been made in his hands. I see no merit in the Revenue’s instant arguments. I find that although the assessee had filed all the necessary details of his derivative transactions, his clinching plea that he has not made any client code modification has not even been dealt with or declined in either the lower proceeding. I therefore accept the assessee’s latter substantive ground on merits. The impugned addition is deleted.

This assessee’s appeal is partly allowed in above terms.