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2019 (6) TMI 543 - AT - Income TaxReassessment proceedings u/s. 147 as against 153C - Addition u/s 68 - proof of identity and creditworthiness of the share applicants and the genuineness of the transaction - HELD THAT:- It is an admitted fact that in the instant case the information was passed on by the DDIT (Investigation) and not by the Assessing officer of the S. K. Jain Group i.e. the AO of the searched person. No documents belonging to the assessee was found and S. K. Jain Group had never stated that the documents so seized from their premises do not belong to them. We find the coordinate bench of the Tribunal in the case of Surya Financial Services Limited Vs. PCIT [2018 (1) TMI 1360 - ITAT DELHI] while deciding an identical issue on the validity of reassessment proceedings u/s. 147 as against 153C on the basis of the same S. K. Jain Dairies. Further in the instant case it can be seen that no material belonging to the assessee was found from the residence of Shri S. K. Jain and only evidence of accommodation entries given by Sh. S. K. Jain Group of cases, through their various shell companies was found during the course of search and post search enquiries. The information was passed on to the AO of the assessee by the investigation wing and no material belonging to the assessee was either found from the residence of this S. K. Jain or handed over to the AO of the assessee by the Assessing Officer of the searched person. Therefore, the Assessing Officer in the instant case has rightly invoked jurisdiction u/s. 147 and not u/s 153C of the IT Act,1961. The ground appeal No. 1 by the assessee is accordingly dismissed. Bogus share capital and share premium - the assessee was not provided with the copy of the statement given by Sh. S. K. Jain / Virender K. Jain which has been utilized against the assessee. Considering the totality of the facts of the case and in the interest of justice we deem it proper to restore this issue to the file of the Assessing Officer with a direction to grant one more opportunity to the assessee to substantiate with evidence to his satisfaction regarding the identity and creditworthiness of the share applicants and the genuineness of the transactions. The Assessing Officer shall decide the issue as per fact and law after giving due opportunity of being heard to the assessee. Further while doing so the Assessing Officer shall keep in mind the decision of M/s. NRA Iron & Steel (P) Limited [2019 (3) TMI 323 - SUPREME COURT] and NDR Promoters Limited [2019 (1) TMI 1089 - DELHI HIGH COURT] . The ground of appeal No.2 is accordingly allowed for statistical purpose.
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