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2021 (7) TMI 506 - AT - Income TaxValidity of reassessment proceedings - Addition u/s 68 - HELD THAT:- CIT(A) after detailed discussions, dismissed each of the aspect raised by the assessee challenging the validity of the reassessment proceedings. In absence of any contrary material brought to our notice, the reassessment proceedings initiated by the AO and confirmed by the CIT(A) is upheld. Addition u/s 68 - As assessee, during the year, has sold the investment and has received the amount by cheque and, therefore, provisions of section 68 cannot be applied to realization of investment which was duly reflected in the balance sheet of the assessee company in the preceding assessment year. In my opinion, if the sale of share is bogus, then the purchase of the same shares is also bogus. If the case of the Revenue is that assessee's own money has come back to the assessee in shape of accommodation entry, then, the money of the assessee had gone in the preceding year in shape of purchase of the shares which were sold during the year. No action appears to have been taken in the preceding assessment year treating the purchase of the shares as bogus. Once such bogus purchase is sold then the entire amount, cannot be added u/s. 68 - set aside the order of the CIT(A) on this issue and direct the AO to delete the addition - Decided in favour of assessee.
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