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2015 (8) TMI 224 - AT - Income TaxReopening of assessment - validity of reassessment - notice u/s 148 was not issued/served upon the assessee within the statutory period of limitation as per assessee - Held that:- On careful consideration of the facts in the light of submission of the appellant, it is evident that the ld. AO had sent the notice u/s 148 dated 18.3.2011 at the previous address of the appellant, which was changed 6 years ago by the appellant. Necessary information was specifically given to the AO in this regard and even the address was changed in the PAN data base. It is very likely that the AO, simply attached the information received from the Investigation wing with the return for the AY 2004-05 and issued the notice u/s 148, without bothering to find out whether the appellant continues to be at the same address at which it had filed the return 5 years ago. Neither did he check the address from the current return nor from PAN data base. It is thus evident that the notice sent at wrong address was to return back. Strangely the AO has also acknowledged these facts in the impugned order. Thus if the notice dated 18.3.2011 had returned before 31.3.2011, why the AO not applied mind in the matter to find out the correct address, by looking at data base of his assesses. The argument that it was the appellant, who had at some point of time given this address, is of no relevance, as the AO was in possession of the new address, which was duly informed by the appellant, and from which later returns were filed and which was also available in the PAN data base. Thus the reassessment proceedings in pursuance of the notice u/s 148, which was not served upon the appellant (within the prescribed time) as bad in law. Further, on perusal of the copy of the notice the same shows that the notice u/s 148 is silent about the assessment year for which the proceedings were to be reopened. Thus the notice u/s 148 as invalid.- Decided in favour of assessee. Addition u/s 68 - CIT(A) deleted the addition - Held that:- The appellant had furnished all relevant information to substantiate the identity, genuineness and creditworthiness of the share applicants by filing conformation, their PAN/ITR Details, copy of bank statements, ROC documents for allotment of shares. Appellant had duly discharged the onus and it was the responsibility of the AO to have made necessary verification in respect of the evidences furnished by the Appellant. Since the ld. AO made no efforts at any stage, be at the stage of recording of the reason for reopening of the case or at the assessment stage, the Appellant had duly substantiated the necessary requirements for holding cash credit as explained. Factually also, there were no specific adverse observations nor any contradiction observed by the AO in respect of such evidences and hence the action of the AO in holding the same as unexplained cash credit was without any basis, cogent grounds and was therefore unjustified. See CIT vs. Lovely Exports P. Ltd. [2008 (1) TMI 575 - SUPREME COURT OF INDIA] - Decided in favour of assessee.
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