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2019 (2) TMI 350 - ITAT BANGALOREReopening of assessment - applicability of provisions of sec.153C - Held that:- On the disputed issue of assessment u/s 143(3) r.w.s. 147, though the assessee’s premises was not searched u/s 132, the fact remains that the assessee is only a third party and the details which are unearthed in the case of a searched person or belonging to assessee are prima facie cannot be disbelieved. The assessee has filed revised grounds of cross objection challenging the validity of issue of notice u/s 143(2) of the Act. At the time of hearing, the learned AR submitted that for the assessment year 2011-12, the assessment was completed u/s 143(3) of the Act without issuing notice u/s 143(2). On perusal of the assessment order, we found that notice u/s 143(2) was issued on 20/01/2014. When we called for assessment records of the AO, the said information could not be explained and also there is no finding of the CIT(A) on this legal issue which was raised. Hence, we consider it appropriate to remit this disputed issue to the file of the CIT(A) for adjudication. Accordingly, the cross objection for the assessment year 2011-12 is partly allowed for statistical purposes. Calculation of peak credit between the transaction of the assessee, Shri Dayananda Pai and CHD on the basis of documents filed in the course of hearing - Held that:- We are unable to understand the methodology of consolidated peak credit considered and there is no reference to peak credit calculation in respect of this assessee. The details filed by the AR are for the first time before the Tribunal based on the statements recorded in Dummy Tally Account in the course of search operations of Shri Dayananda Pai and CHD. We considering the material filed on record and the Settlement Commission and CIT(A)’s observations, are of the substantive opinion that these facts are to be examined and verified and the matter needs to be reconsidered for limited purpose for calculation of peak credit between the transaction of the assessee, Shri Dayananda Pai and CHD on the basis of documents filed in the course of hearing and accordingly, we restore this disputed issue to the file of the CIT(A) who shall call for remand report from the AO on these issues and pass a speaking order on the peak credit calculation only. The assessee shall co-operate in submitting information at the earliest and we allow the grounds of appeal of Revenue for statistical purposes.
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