2019 (6) TMI 651 - AT - Income Tax

Reopening of assessment u/s. 147 - proof of proper service of notice to the assessee and within period of limitation - addition u/s.68 in respect of share application money received - HELD THAT:- As the Revenue could not prove that there was proper issue and service of notice u/s. 148 of the Act on the assessee within the time prescribed i.e. on or before 31.03.2016 for the A.Y. 2009-10, the Ld. CIT(A) has rightly concluded that the reopening u/s. 147 is bad in law. On this ground alone the assessment framed u/s. 143(3) r.w.s 147 of the Act is liable to be quashed.

Even on merits the CIT(A) examined the addition made by Assessing Officer with references to the evidences furnished by the assessee and the averments of the Assessing Officer and concluded that the assessee has proved the identity, genuineness, creditworthiness of the creditor

Once the assessee furnished all the details in respect of the loan transactions assessee has discharged its initial burden and the burden shifts to the assessee. It was held that no addition can be made only on the basis of information received from the investigation wing without there being any evidences to disprove the loan transactions from the creditors. See M/S SHREE LAXMI ESTATE PVT LTD, M/S SHREE LAXMI DEVELOPERS VERSUS ITO, WD. 15 (3) (3) , WD. 26 (3) (2) , MUMBAI [2017 (12) TMI 1699 - ITAT MUMBAI].

The decision relied on by the Ld. DR in the case of CIT v. NRE Iron and Steel (P.) Ltd [2019 (3) TMI 323 - SUPREME COURT] is distinguishable on facts.

Thus we uphold the order of the Ld.CIT(A) in quashing the reassessment order and deleting the addition made u/s. 68 - Decided in favour of assessee.