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2023 (6) TMI 1126 - AT - Income TaxAddition u/s 68 - receipt of loan unexplained - lender had confirmed the fact of advancing the loan to the assessee - HELD THAT:- As the assessee had discharged its primary onus of fulfilling the three ingredients of Sec.68. The lender, in sworn statement, admitted the fact of granting of loan and thus, the assessee stood discharged. The onus was now on revenue to make further enquiries from the lenders to ascertain their financial capacity to lend the loans. Turnover alone could not be considered as source of loan as advanced to the assessee. In the absence of such a fact based-finding to prove that assessee’s own money was routed through banking channels in the garb of loan, the impugned addition could not be sustained in law. The assessee was not expected to prove the source of source as held by Hon’ble Supreme Court in the case of M/s Lovely Exports (P.) Ltd.[2008 (1) TMI 575 - SC ORDER] - Therefore, we direct Ld. AO to delete the impugned addition. The assessee’s appeal stand allowed accordingly. Validity of reassessment proceedings - absence of any tangible material - HELD THAT:- We find that the original return of income was scrutinized u/s 143(3). The case was reopened within 4 years. The perusal of assessment order would show that Ld. AO has not referred to any tangible material coming into his possession which would lead to formation of a belief that certain income escaped assessment in the hands of the assessee. Apparently, reassessment has been initiated on the same set of material as available before Ld. AO during original assessment proceedings. This being so, the reassessment proceedings would be nothing would review of the order which is impermissible. In absence of any new tangible material, the case could not be reopened on mere change of opinion - See M/S. KELVINATOR OF INDIA LIMITED [2010 (1) TMI 11 - SUPREME COURT] - Reassessment proceedings are bad in law and hence, liable to be quashed - Decided in favour of assessee.
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