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2018 (11) TMI 132 - AT - Income TaxAddition u/s 68 - reopening of assessment - no proper opportunity was not given to assessee by AO during the reassessment proceedings - Held that:- After examining all the details filed by the assessee company, shareholders of the assessee company and the directors of the share applicant companies the A.O. opined that verification of identity, genuineness and creditworthiness of the share applicants could not be done because the assessee company and the shareholders failed to comply to the summons. Thus the entire amount of share application money received along with premium to the tune of ₹ 91,35,00,000/- was added u/s 68 of the Act. The assessee had successfully explained the source of source of receipt by matching each entry with the bank statement and thus, the assessee has successfully proven the source of source and origin of origin of the receipts as envisaged u/s. 68. It was reiterated by the AR that the Balance Sheet and ITR Acknowledgement were also submitted at the time of hearing. The bank statement showing the sources of fund was being submitted before us for the first time. In such a scenario, for the ends of justice and fair play for both the parties and since the assessee could not produce the directors at the fag end of the assessment, on which ground alone the share capital along with the premium was added u/s. 68 therefore, we hold that proper opportunity was not given to assessee by AO during the reassessment proceedings and so we are, therefore of the opinion that assessee did not get proper opportunity before the AO during reassessment proceedings - Remand the matter back to the file of AO for de-novo assessment and to decide the matter in accordance to law after giving opportunity of being heard to the assessee. - Decided in favour of assessee for statistical purposes.
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