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2014 (5) TMI 1170 - AT - Income TaxReopening of assessment - no opportunity to cross examine - Held that:- A.O. has been heavily carried away by the information of DDIT(Inv) and has ignored the fact that the share application money was received on 22.03.2006 through cheque No. 453639. M/s. Alliance Intermediatories and Network p. Ltd. is assessed to tax. Board’s resolution and confirmation of this company was filed before A.O. All these documents establish the identity of the share applicant and the genuinity of the transaction is also proved on record. The statement of Shri Mukesh Choksi was recorded at the back of the assessee and no opportunity to cross examine him was given to the assessee. A.O. has not made his independent inquiries and verification to ascertain the correct facts. Therefore, we can safely hold that the assumption of jurisdiction by A.O. u/s 147 r.w.s. 148 is invalid and the assessment so made becomes authorities below initio void. However, we quash the order made u/s 147/143(3) of the Act in question and also hold that the addition of ₹ 5 lakhs in assessee’s hands is not warranted. Accordingly, we allow the appeal by the assessee.
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