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2019 (4) TMI 199 - AT - Income TaxReopening of assessment u/s 148 - addition on account of deemed dividend u/s 2(22)(e) - Already taxed in hand of recipient concern - assessee was major shareholder of the concern - Reason to belief - HELD THAT:- Eventuality of application of section 2(22)(e) whether in the hands of Zetex or the assessee simultaneously cannot be taken up i.e. where the addition has already been made in the hands of Zetex by the AO concerned and the said addition was challenged before various Forums simultaneously, re-assessment proceedings cannot be initiated in the hands of assessee being the major shareholder. DHFL Venture Capital Fund Vs. ITO [2013 (6) TMI 575 - BOMBAY HIGH COURT] had held that jurisdictional requirement for reopening of assessment under section 148 of the Act was the formation of reason to believe by the Assessing Officer that income had escaped assessment and existence of that reason must be in present No merit in initiation of re-assessment proceedings by recording reasons for reopening assessment in the hands of assessee as on 04.09.2013 i.e. the date on which the addition was already made in the hands of recipient of loan, though the assessee was major shareholder of the concern giving loan and concern taking the loan. Hence, the re-assessment order passed under section 143(3) r.w.s. 147 of the Act is annulled. The additional ground of appeal raised by assessee is thus, allowed.
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