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2017 (3) TMI 569 - AT - Income TaxReopening of assessment - non-service of notice - amount received as a result of sale proceeds of investments in shares of different companies - Held that:- Assessing Officer had issued the notice to the appellant at the address which was last known to him. The return for the A.Y. 2003-04 was filed at the address C-107, ABC Complex, 20 Veer Savarkar Block, Shakarpur Delhi 110092, but after sometime the return for A.Y. 2009-10 was filed at another address. Therefore, the AO rightly issued notice at the address lastly given by the assessee. During the course of hearing, the assessee was specifically asked for submission of correct address as per database of the IT department. In this regard the AR of the appellant submitted on the next day of hearing the PAN Database where the address is written as Blossom Advertisers Pvt. Ltd. Gali No. 7, Balbir Nagar, Delhi. It is clear from the above that the Assessing Officer was justified to issue the notice at the given address, and hence, the notice shall be deemed to be served on the assessee. Therefore, the contention of assessee regarding invalidity of assessment on the basis of non-service of notice u/s. 148 is rejected. AR of the assessee had filed the details of investments held as on 31.03.2002 with the submission that money in question was received as a result of sale proceeds of investment, which results that an asset held by the appellant has been converted into money at cost and hence, there will be no effect in the balance sheet and there cannot be any accommodation entry regarding sale of an asset which was already held by the assessee. It was also the contention of the assessee that once the prior investments are sold and payments realized by cheques, how such sale could be doubted without doubting the purchase of assets already held by the assessee. The ld. Authorities below have failed to examine this aspect of the case nor have given any finding on the same, particularly when the assessee had submitted the details of prior investments held by it and documentary evidences relating to their sale before the authorities below. In presence of these facts, we deem it expedient in the interest of justice to restore the matter to the file of Assessing Officer for passing the assessment de novo after verifying the alleged sale of shares with reference to their purchase. The AO shall examine the holding of investments (shares), date and cost of purchase, mode of acquisition alongwith their distinctive numbers, position of balance sheet after their sale etc. - Decided in favour of assessee for statistical purposes.
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