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2022 (8) TMI 288 - AT - Income TaxReopening of assessment u/s 147 - purchase of property - PAN of the firm was fake, so the entire deposit in the bank account of the firm is added back as per the profit-sharing ratio of the partners and added back in the partner's hand - HELD THAT:- AO made gross violation of natural justice in this case. Without the assessment of the firm how the amount deposited in account of the firm was added back in the partner's hand. Further, the Ld. AO fully deviated from reason recorded & the addition made in assessment. The Ld. CIT(A) had not adjudicated the issue in his order. AO recorded the reason which warranted him to hold the belief that the income chargeable to tax has escaped assessment thereafter the Ld. AO usurped the jurisdiction to reopen the assessment. When the income is foundation on which he based his belief of escapement of income is absent, so AO's usurpation of jurisdiction to reopen of assessment is legally untenable & so, null in the eyes of law. So, we quash the reassessment made by the Ld. AO without jurisdiction. The addition to amount be deleted accordingly. - Decided in favour of assessee.
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