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2014 (10) TMI 142 - AT - Income TaxReopening of assessment u/s 148 – Change in postal address or not - Statutory notices were issued and duly send to the address of the assessee by the AO before the limitation period to re-open - Held that:- Assessee contended that there is no change in the postal address of the assessee and tried to convince us that mandatory statutory notices before re-opening of assessment were not served upon the assesse - the assessee itself has admitted that it has received the re-assessment order and also the appeal notices of the appellate proceedings in the very same postal address where the AO has sent the statutory notices envisaged under the Act before re-opening the assessment. The assessee has not leveled any malafide motive on the part of the AO to deliberately not to have issued the statutory notices before the re-opening of the assessment order and we find no reason why the AO should make up such report that the statutory notices as per the Act, was issued and sent in the postal address of the assessee and it was returned back with remark “left no such person”. When the assessee had admitted to have received the re-assessment order and other appellate notice in the said address where the AO has also sent the Section 148/ 147 notices, there is no reason to disbelieve the AO’s report that in fact statutory notices were issued and sent in the said address to be served upon the assessee before the limitation period - The conduct of the Assessee company to file on the last day of limitation some papers before the AO, strengthens the belief of the AO assesse deliberately avoided the said notice and does not give any scope to suspect the report of the AO, that notices u/s 148/ 147 was duly issued to the Assessee company, and it cannot claim any lapse on the part of the AO and cannot take any benefit out of it - the AO has made detailed enquiry in the remand report regarding the genuineness of the share applicants by sending notice u//s 133(6) and summons u/s 131 and also had send an inspector to serve the notice - merely because transactions happened through banking channel does not ipso facto establish genuineness and creditworthiness of the transactions. The AO in the second remand report has tried his level best to contact the share applicant however, he failed to do so because the share applicants could not be traced in the addresses furnished by the assessee - proper enquiry has been conducted by the AO, before the CIT(A) confirmed the addition - statutory notices were issued and duly send to the address of the assessee by the AO before the limitation period to re-open the assessment and we find that on 30.12.2010 i.e., the last day on which the limitation got over, the assessee had filed its reply to the statutory notices and also has admitted of receiving the re-assessment order and notices of the appellate proceedings – thus, the ground of non-service of statutory notices before re-opening proceedings cannot be countenanced. It is it difficult to subscribe to the contention that by producing merely the name and PAN details of the share applicants the burden on the assessee is discharged - By merely furnishing the said details would not prove the genuineness and creditworthiness of the share applicants – there was no infirmity in the reasoning given by the CIT(A), and proper enquiry has been made by the AO during the remand proceedings and there is no reason for us to interfere in the order – Decided against assessee.
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