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2016 (3) TMI 1417 - AT - Income TaxReopening of assessment u/s 147 - Addition u/s. 68 - identity and credit worthiness of the subscribers to the share application money and genuineness of transaction, were not established satisfactorily - HELD THAT:- As reasons recorded by the AO/DCIT, Circle 17(1), New Delhi for reopening and the approval thereof by the Ld. Addl. CIT, Range-17, New Delhi, we are of the view that AO has not applied his mind so as to come to an independent conclusion that he has reason to believe that income has escaped during the year. In our view the reasons are vague and are not based on any tangible material as well as are not acceptable in the eyes of law. AO has mechanically issued notice u/s.148 of the Act, on the basis of information allegedly received by him from the Directorate of Income Tax (Investigation), New Delhi. As applicable in the case of the assessee, we are of the considered view that the reopening in the case of the assessee for the asstt. Year in dispute is bad in law and deserves to be quashed. - Decided in favour of assessee.
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