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2019 (3) TMI 571 - AT - Income TaxAssessment u/s 153A - addition u/s 68 - non production of said shareholders - notice under section 143(2) have been issued on the date of filing of the return of income itself - HELD THAT:- As decided in BHIKHUBHAI VITHLABHAI PATEL & ORS. VERSUS STATE OF GUJARAT & ANR. [2008 (3) TMI 660 - SUPREME COURT OF INDIA] no hesitation in our mind in accepting the legal plea raised by Ld AR before us and thus holding that notice u/s 143(2) issued at same time and date of return filing u/s 148 ( vide order sheet entry dated 27/04/2016) vitiates the entire exercise and accordingly all subsequent proceedings are held to be invalid in eyes of law and therefore we quash the orders passed by AO and CIT(A) and allow additional ground raised by assessee. Even otherwise, on the merit of the case i.e. addition made u/s 68 that for mere reason of non production of directors in person of share holder companies same cannot be a justified ground to draw adverse inference u/s 68 of the Act where those share holders are found to be existing and identified in detail as summons have been duly served on them. Mere non production of share holder companies director is argued to be no valid reason for making addition u/s 68 of the Act dehors voluminous evidences filed which has not been objectively and lawfully controverted in manner known to law. For this Ld counsel for the assessee placed before us during the course of hearing a comprehensive chart of case laws from coordinate benches of ITAT where similar argument in identical circumstances of additions based on S.K.Jain group search has been deleted u/s 68 of the Act. - Decided in favour of assessee.
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