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2019 (1) TMI 1452 - AT - Income TaxReopening of assessment - disallowing STT debited to P&L Account, income-tax debited, disallowance u/s 14A and preliminary expenses - addition u/s 68 - assessment proceedings u/s 153A/143(3) - Held that:- In the case of CIT vs. Raj Kumar Arora [2014 (10) TMI 255 - ALLAHABAD HIGH COURT] wherein it has been held that the AO has power to reassess returns of the assessee not only for undisclosed income found during the search operation, but also with regard to material available at the time of original assessment. Similar view has been taken in the case of CIT vs. Kesarwani Zarda Bhandar Sahson, Allahabad [2017 (4) TMI 57 - ALLAHABAD HIGH COURT] wherein it has been held that the Assessing Officer has power to reassess returns of the assessee not only for undisclosed income found during search operation, but also with regard to material available at the time of original assessment. Thus we are unable to accept the contention of the ld. counsel for the assessee that in the absence of any incriminating material found during the course of search, the initiation of proceeding u/s 153A are not valid. Therefore, the legal ground raised by the assessee stands dismissed. Coming to the merit of the case, it is an admitted fact that in the order passed u/s 147/143(3) on 31st December, 2009, the Assessing Officer had examined the issue of share premium and share application money. On the basis of various details filed by the assessee as required by the Assessing Officer, no addition was made and the issue of share premium was accepted without making any addition. When the assessee during the course of reassessment proceedings had filed the requisite details such as the copies of share applications, bank statements including details of allotment, premium charge, etc., and nothing adverse was found during the course of search proceedings and considering the fact that nothing adverse during post search inquiries was found to negate the documents already filed at the time of the reassessment proceedings, the present Assessing Officer, on the same set of material cannot take a different view than the view already taken by his predecessor at the time of original assessment merely because a search has taken place. Addition made by the Assessing Officer and sustained by the CIT(A) is not justified. Accordingly, AO is directed to delete the addition made by him u/s 68 - Appeal filed by the assessee is partly allowed.
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