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2018 (7) TMI 1898 - AT - Income TaxReopening of assessment - addition u/s 68 - assessee could not explain the opening capital as on 01/04/2004 relevant to the Assessment Year 2005-06 - grounds set out in the re-assessment notice are nonexistent- HELD THAT:- If the AO fails to acquire a valid jurisdiction to make re- assessment on the basis of his reasons, then, he is also debarred from making additions for other incomes chargeable to tax which escaped assessment and come to his notice subsequently in the course of proceedings u/s 147. As test the facts of the instant case on the touchstone of the principle as discussed hereinabove, it turns out that the solitary reason taken note of by the AO before issuing notice u/s 148 is non-existent and, resultantly, there is no question of making any other addition. The reopening was made on the ground that the opening balance as on 01/04/2004, was not explained. While so, no addition was made on this count. The ‘SMC’ Delhi Bench of the Tribunal in the case of M/s. Pragati Finsec Ltd. vs. ITO, [2018 (6) TMI 1574 - ITAT DELHI] relying on the judgment of CIT vs. Chiel Communications Pvt. Ltd. [2013 (5) TMI 417 - DELHI HIGH COURT] and the judgment of CIT vs. Jet Airways Ltd. [2010 (4) TMI 431 - HIGH COURT OF BOMBAY] - decided in favour of assessee
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