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2018 (8) TMI 1552 - HC - Income TaxAddition u/s 68 - reopening of assessment - Assessing Officer was of the opinion that bogus transactions were shown as receipts towards share application money through 10 entities - ITAT deleted the addition - Held that:- CIT(A) and the ITAT reconsidered the materials on the record and upon their overall analysis formed the opinion that the appropriate tests, indicated by the Supreme Court in Commissioner of Income Tax vs. Lovely Exports [2008 (1) TMI 575 - SUPREME COURT OF INDIA] were satisfied that the materials on record are not mere superficial details like PAN, ROC, etc. but further facts relating to the bank accounts of the share applicants. The share applicants were entering into proper commercial transactions and were not per se forged, bogus or sham investors. Undoubtedly, the Assessing Officer had ground to suspect that the entries were made prior to the investments. But that was precisely what was required of him. The assessee – in re-assessment, provided all that it could; share investors’ income tax returns and balance-sheets could appropriately have been sourced by the Assessing Officer in the reassessment proceedings. In these circumstances, it cannot be said that the Assessing Officer exercised due diligence in respect of all facets of the case. Even a contrary view would amount to re-assessment in the facts and circumstances. - decided against revenue
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