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2017 (6) TMI 1183 - AT - Income TaxReopening of assessment under section 147/148 - addition on account of alleged finance provided by the assessee to Shri Shriram H. Soni and also of interest - Held that:- The issue raised by the assessee against the reopening of assessment has no merit since against the return of income filed by the assessee, no scrutiny assessment was initiated and no order was passed under section 143(3) of the Act. The Assessing Officer after receiving information had recorded reasons for reopening the assessment and thereafter, had issued notice under section 148 of the Act. Following the ratio laid down by the Hon'ble Supreme Court in ACIT Vs. Rajesh Jhaveri Stock Brokers (P) Ltd. (2007 (5) TMI 197 - SUPREME Court), we uphold the initiation of re-assessment under section 147/148 of the Act. In the absence of any seized material found or produced before us relating to the year under appeal, there is no merit in the addition of ₹ 34 lakhs alleged to have advanced by the assessee during the year. It may further be pointed out that the Assessing Officer while computing interest in the case of assessee on such advancement of loan, had computed the interest for the period of 12 months. In other words, case of Revenue is that the amount was invested for the full 12 months with Shri Soni, on which interest had been worked out at ₹ 7,14,000/-. In case interest of 12 months is added in the hands of assessee, then no addition can be made on account of investment made by the assessee, since the amount would have been advanced in the preceding year and not in the year under consideration. In any case, once we have deleted the addition of ₹ 34 lakhs, consequent addition of interest earned on the said advance of ₹ 34 lakhs also stands deleted. The onus for substantiating that the entries belonged to the assessee was strongly upon the Revenue and the Revenue has failed to discharge its onus and in the absence of the same and in view of various other points / issues, we find no merit in the orders of authorities below. - Decided partly in favour of assessee.
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