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2019 (11) TMI 548 - AT - Income TaxReopening of assessment u/s 147 - disallowance u/s 14A - HELD THAT:- A.O. initiated the re-assessment proceedings because assessee has undertaken off-market transactions of shares of Era Infra Engineering Ltd., for ₹ 35 lakhs, therefore, for examining the issue of ₹ 35 lakhs, the A.O. initiated the re-assessment proceedings, but, ultimately, no addition have been made of ₹ 35 lakhs. A.O. recorded wrong reasons in this case. A.O. instead of making any addition relating to the reasons recorded for ₹ 35 lakhs, made independent addition under section 14A. Thus, both the above decisions clearly apply to the facts and circumstances of the case. There was, thus, no justification for the A.O. to initiate re-assessment proceedings against the assessee. In this view of the matter, reopening of the assessment is invalid and bad in law. Accordingly, set aside the Orders of the authorities below and quash the reopening of the assessment. Resultantly, appeal of Assessee is allowed. In this view of the matter, there is no need to decide the addition under section 14A which is left with academic discussion only.
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