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2023 (4) TMI 128 - AT - Income TaxReopening of assessment u/s 147 - Addition u/s 68 - bogus share transactions - details not furnished for the persons who had bought the shares from the assessee - Non independent application of mind by AO - Borrowed satisfaction - HELD THAT:- AO has merely repeated the information received from the Investigation Wing without carrying out any verification and the addition made in the reassessment is on the basis of factually incorrect assertions/statements and fundamentally wrong facts as discussed in details above. Accordingly, we hold that the reassessment proceeding initiated by issuing notice u/s.148 of the Act and passing the order u/s. 147 of the Act is not legally valid and is directed to be set aside. Thus, ground taken by the assessee in its Cross Objection is allowed. Addition u/s 68 - Shares sold by the assessee during the year for which the addition has been made were purchased in the preceding year and formed part of the closing stock of shares as on 31.03.2009, duly reported and reflected in the audited Balance Sheet of the assessee, details of which are already extracted above - we are not inclined to interfere with the finding given by the Ld. CIT(A) on the merit of the case whereby the addition made by the Ld. AO has been directed to be deleted. Accordingly, grounds taken by the revenue in its appeal are dismissed.
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