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2020 (12) TMI 605 - AT - Income TaxReopening of assessment u/s 147 - Unexplained loan - application for admission of additional evidences under Rule 46A explaining that due to change of address in the Registered Office and due to old age of one of the Director Mrs. Baleshwari Devi the documents could not be filed before the A.O - HELD THAT:- In the reasons A.O. found escapement of income to the tune of ₹ 1.59 crores on account of purchase of plot at Noida, but, in the re-assessment order A.O. found it is a case of unexplained loan to the extent of ₹ 33,18,842/-, thus, the reasons recorded by the A.O. are non-existing, incorrect and wrong and thus, A.O. did not apply his mind to the information available to him through O/o. Sub-Registrar. In case incorrect, wrong and non-existing reasons are recorded by the A.O. for reopening of the assessment and A.O. failed to verify the information so received due to non application of mind to the information, reopening of the assessment would be unjustified and is liable to be quashed. The same view have been taken by ITAT, Delhi E- Bench, Delhi recently in the case of Shri Natrajan Monie, Gurgaon [2020 (12) TMI 345 - ITAT DELHI]. In assessment year under appeal assessee has paid the installment of the impugned amount. Thus, even the information received from the O/o. Sub-Registrar was not gone into the entirety by the A.O. A.O. has not gone through the contents of the Lease Deed registered with the O/o. Sub- Registrar, Noida which clearly specify that no amount of ₹ 1.59 crore is paid by assessee in assessment year under appeal and the balance amount shall have to be paid by the assessee company in installments. There were no justification for the A.O. to record non-existing, incorrect and wrong facts in the reasons for reopening of the assessment.The entirety of the facts clearly show that A.O. recorded wrong, incorrect and non-existing reasons for reopening of the assessment without application of mind and such reopening of the assessment would be invalid and bad in Law. We are of the view that reopening of the assessment is illegal and bad in Law and is liable to be quashed. We, accordingly, set aside the Orders of the authorities below and quash the reopening of the assessment. Resultantly, all additions stand deleted - Appeal of the Assessee is allowed.
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