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2013 (5) TMI 278 - AT - Income TaxUnexplained cash credit/ceased liability u/s 28(iv) - CIT(A) directed the AO to re-open the A.Y. 2002-03 as the addition was not sustainable - Held that:- As can be seen from the chart of credit received only an amount of Rs.3,84,000/- has been received in the financial year relevant for A.Y. 2002-03. Balance of the amount has been received in later years. So, issuing direction for the A.Y. 2002-03 for the entire amount is not factually correct. Secondly, the assessee furnished confirmation from the party. This additional evidence has been rejected but the confirmation of credit could have been examined in the year itself when the party confirms the credit how a finding can be given for reopening in earlier year is not explained. Thirdly, the AO can not reopen the A.Y. 2002-03 by the time be finalized the proceeding. He is aware of the credit in that year. Since the law prohibits the reopening u/s 147 beyond six years, the direction of CIT(A) to reopen A.Y.2002- 03 in financial year 2012 in the order is against the provisions of law and principles on the issue. There is no finding that the amount was undisclosed. Even the AO order indicates that it is received through banking channel. That itself may not affirm the genuineness of the credit but confirmation filed by assessee prima facie indicate that the amount can not be treated as unexplained cash credit.Reopening order is to be quashed - In favour of assessee.
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