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2018 (7) TMI 372 - AT - Income TaxAddition u/s 263 - addition u/s 68 - Held that:- AO has prepared the remand report after taking note of the evidence in support of the claim made by the assessee that share capital along with the share premium for the total sum of ₹ 54,95,00,000/- was actually received by the assessee company during the FY 1999-2000 i.e. AY 2000-01 The principle of Rule of Law mandates the Government i.e, in this case the AO to act only in accordance to law. The ‘Rule of law’ is an over-arching principle of law, which is a basic feature of the Constitution. So read together with Article 265 of the Constitution, that “No. tax shall be levied or collected without authority of law”, means that AO should assess the income of the assessee only in accordance to law and, therefore, the addition u/s. 68 of the Act could not have been legally added in the hands of the assessee company in this assessment year, so considering the AO’s remand report all the documents filed by assessee for substantiating that share subscription relates to earlier assessment years, we find no infirmity in the order of ld CIT(A) and confirm the impugned order of Ld. CIT(A).
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