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2016 (12) TMI 862 - AT - Income TaxValidity of Reopening of assessment - Held that:- The AO had rightly exercised his power of reopening the assessment in proceedings under section 147/148 of the Act, as he had prima facie valid reasons to believe that income of the assessee exigible to tax for A.Y. 2003-04 had escaped assessment and had therefore correctly reopened the assessment for A.Y. 2005-06. Before us, no material evidence has been brought on record by the assessee to controvert the findings of the learned CIT(A) on this issue. In this view of the matter, while maintaining judicial consistency and finding no merit in the grounds raised or arguments put forth by the learned A.R. of the assessee, we uphold the action of the AO in reopening the assessment for A.Y. 2003-04 in the case on hand. Exemption claimed u/s 54F denied - treating the capital gains on sale of shares as bogus transaction - treatment of the investment in purchase of residential flat at Jaldarshan, Malabar Hills, Mumbai as unexplained investment - Held that:- As decided in assessee's own case for AY 2005-06 we hold that the learned CIT(A) erred in upholding the AO’s action in treating the capital gains on sale of shares amounting to ₹ 35,17,598/- as a bogus transaction, charging commission thereon and denying the assessee’s claim for exemption under section 54F of the Act. We accordingly set aside the orders of the authorities below on these issues. Since it appears that the authorities below have denied the assessee’s claim for exemption under section 54F of the Act summarily, without examining the facts of the claim and computation thereof, the AO is directed to do so while giving effect to this order. We hold and direct accordingly.
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