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2020 (9) TMI 428 - AT - Income TaxReopening of assessment u/s 147 - Additions u/s. 68 - proceedings u/s. 153A - HELD THAT:- In the reasons recorded mentioned elsewhere the AO observed that income has not been offered to tax in the return of income for A. Y.2011-12 whereas as mentioned elsewhere in all his return of income which clearly mentioned income claimed to be exempt u/s. 10 (38) as mentioned elsewhere the same was thoroughly examined after search operations at the premises of the assessee and after thorough examination the assessment was framed u/s. 153 A therefore, in the light of the decision of CARGO CLEARING AGENCY (GUJARAT) [2008 (8) TMI 86 - GUJARAT HIGH COURT] we are of the considered view that reopening of the assessment which was framed u/s. 153 A of the Act is bad in law. AO clearly show that there was no application of mind while issuing of notice u/s. 148 of the Act in as much as had he gone through the assessment records of the assessee he would have seen the computation of income filed with original return income and also with the return of income tax in response to notice u/s. 153 A of the Act. If he had done this exercise he would have known that LTCG has not only been disclosed in the return of income but the same was also claimed to be exempt. Proceedings has been initiated on the basis of no material less any tangible and relevant material and as such reasons recorded do not constitute valid reasons. Moreover the reopening is only on the basis of borrowed satisfaction and as mentioned elsewhere reasons are factually incorrect and the conclusion drawn by the AO in the assessment is contradictory. We hold that the assumption of jurisdiction by the issue of notice u/s. 148 of the Act is bad in law which is quashed and accordingly the assessment so framed is also quashed. - Decided in favour of assessee.
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