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2018 (2) TMI 860 - ITAT HYDERABADReopening of assessment - Unexplained investment - guinity of credits - Held that:- Observation of CIT(A) does not state that the sources are totally bogus and AO was in fact, asked to make further enquiries. Since no enquiries worth were made, the order of CIT(A) Bhubaneswar cannot be relied on, for denying the genuineness of the credits. Since so much time has lapsed and the affidavits furnished dt. 25-10-2007 have not been disproved, the contentions of assessee in this regard has merit. Revenue wrongly relied on the reports in the case of company and on the order of CIT(A), Bhubaneswar and has not made any enquiry in assessee case to disprove the credits claimed. Thus direct the AO to accept the credits as such, as genuine. In fact, the borrowals are only to the extent of ₹ 13.50 lakhs. Addition of ₹ 22.30 lakhs, being the entire investment in that company without examining the other sources is not correct and hence deleted. For reopening of assessment in view of the acceptance of issue of credits on merit, it is to be placed on record that the contentions on the issue have merit. First of all, assessee has disclosed the investment and enclosed the confirmations to the original return which was accepted. There was a direction by Addl. CIT, Range-12 to reopen the assessment. Another offer (whose jurisdiction is not examined) has issued the notices, even though assessee was assessed earlier. The reasons for reopening were not communicated violating the directions of Hon'ble Supreme Court in the case of GKN Drive Shaft, [2002 (11) TMI 7 - SUPREME Court]. The contentions extracted in assessee counsel’s submissions and the case law relied, support the conclusion that the reopening itself is bad in law. - Decided in favour of assessee
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