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2020 (6) TMI 29 - AT - Income TaxRe-opening of assessment u/s 147 - addition of the sale proceeds u/s 68 - re-opening in this case is beyond a period of 4 years from the end of the assessment year - Approval in such cases is to be obtained from ACIT or JCIT u/s 151 of the Act and not from the Pr. CIT - HELD THAT:- It is not clear from where the AO picked up these figures for making the addition. DR could not prove the correctness of these figures. AO has mixed up the facts with some other case. Re-opening made based on such incorrect facts or such wrong figures cannot be sustained. The re-opening in this case is beyond a period of 4 years from the end of the assessment year. The AO states that approval for re-opening of assessment was obtained from the Pr. CIT, Kol-5. The original return file was processed u/s 143(1). Approval in such cases is to be obtained from ACIT or JCIT u/s 151 and not from the Pr. CIT. In any event no proof of approval from any authority is produced before me. There is non-application of mind by the AO to the information received, prior the re-opening of the assessment. This fact is clear from the facts and figures given in the reasons recorded are wrong. Such non-application of mind to the information received by the AO prior to recording of reasons for re-opening of assessment makes the reopening bad in law. Re-opening of assessment based on wrong facts and figures is bad in law. The re-opening is also bad in law as it proves non-application of mind by the AO. Addition of the sale proceeds u/s 68 - Assessee has disclosed the sale of shares in its books of account. Once the sale is declared as income by the assessee, the question of treating the same amount as a cash credit u/s 68 of the Act results in double addition. Moreover, the gross receipt cannot be brought to tax, specifically when the assessee had acquired the shares to an allotment as evidenced by the letter of allotment payment details etc. Thus, the addition is also bad on merits. - Decided in favour of assessee.
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