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2014 (11) TMI 1265 - HC - Income TaxAddition u/s 68 - funds in the form of share capital came from persons other than the company - HELD THAT:- The issue No.1 is already answered by this Court in favour of the assessee and against the revenue in the decision rendered in [2010 (8) TMI 1135 - GUJARAT HIGH COURT] as relied upon by the learned advocate for the appellant held that as having traced out the source of funds to specific persons who had invested the same in shares of the assessee company, it was open for the Assessing Officer to proceed against the said persons. The funds not having emanated from the assessee company, there was no warrant for making addition of the said amount as undisclosed income under section 68 of the Act in its hands. In the circumstances, the Tribunal was justified in deleting the addition.The issue No.1 is already answered by this Court in favour of the assessee and against the revenue. Charging of interest u/s 217 when the assessment under Section 143(3) read with Section 147 has to be treated as an original assessment - ITAT deleted the addition - HELD THAT:- Issue concluded by the decision of the Punjab and Haryana High Court in the case of Darshan Lal Gulati [2008 (3) TMI 683 - PUNJAB AND HARYANA HIGH COURT] wherein, it is held that in case an assessment had been framed in response to original return filed by assessee, first or initial assessment made by Assessing Officer would be treated as regular assessment and in that situation, assessment in pursuance to reassessment proceedings could not be termed as ‘first assessment’ so as to come within the meaning of expression ‘regular assessment’ and, accordingly interest under Section 217 could not have been charged. Thus, the question No.2 is also answered in favour of the assessee and against the revenue.
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