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2018 (3) TMI 1607 - AT - Income TaxReopening of assessment - addition u/s 68 - Held that:- AO has wrongly assumed the jurisdiction u/s 147 of the I.T. Act. The reason for reopening was not properly recorded. The AO has not applied his mind, approval for issue of notice u/s. 148 is not in accordance with law. In view of above, assessment order passed u/s. 147 of the Act r.w. section 143(3) of the Act was rightly treated ab initio void by the Ld. CIT(A), which does not need any interference on my part, uphold this action of Ld. CIT(A) and reject the ground no. 1 raised by the Revenue. Addition u/s 68 - Hon’ble Supreme Court of India observed in the case of CIT vs. Stellar Investment Ltd. [2000 (7) TMI 76 - SUPREME COURT] by upholding the view taken by the Hon’ble Delhi High Court [1991 (4) TMI 100 - DELHI HIGH COURT] that in case of a company, even if the subscriber to the share capital are not genuine then too, it would not be regarded as undisclosed income for the assessee company. Keeping in view of the facts and circumstances of the case as explained above and respectfully following the aforesaid precedents, the action of the Ld. CIT(A) of deletion of addition of ₹ 40 lacs is upheld and accordingly, the ground 2 & 3 raised by the Revenue are also rejected.
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