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2013 (1) TMI 235 - HC - Income TaxReopening of assessment - loss in shares has been fraudulently claimed - bogus transactions - Tribunal dismissed the appeal of the department on technical ground without going to the merit of the case - Held that:- From a perusal of the reasons recorded by the AO it is found that he had simply recorded the finding in the assessment order passed for the assessment year 1996-97 and a vague reference was made that similar was the position in respect of the assessment year in question. Facts which have emerged from the assessment order for the A.Y.1995-96, are altogether different from those on the basis of which assessment has been reopened u/s 148 in A.Y.1996-97. Even after detailed investigation, the A.O. has not been able to find out that the appellant has purchased or sold the shares within short span of time or that shares have been purchased at a rate higher than the market rate as has been found in the A.Y.1996-97. In fact in the order of the A.Y.1996-97 there is only vague reference of A.Y.1995-96. From the perusal of the order it is absolutely clear that there is no reference to any transaction for the assessment year 1995-96. CIT was, therefore, perfectly justified in holding that the reasons recorded by the AO were not honest reason and there is nothing to show from this reason that income has escaped assessment and assessment has been primarily reopened with a view to make enquiries and conduct examination of various expenses debited to profit and loss account. This order has been affirmed by the Tribunal. The reasons recorded by the Assessing Officer do not show that they are relevant to reopen the assessment proceedings - ITAT was justified in dismissing the appeal of the department on technical ground without going to the merit of the case - in favour of assessee.
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