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2024 (1) TMI 411 - AT - Income TaxValidity of Reopening of assessment u/s 147 - Addition u/s 68 - assessee had failed to discharge its onus of establishing genuineness of creditworthiness of the parties - HELD THAT:- While here is a case where Ld. AO intends to make an addition u/s 68 of the Act, for any sum found credited in the books, by rebutting the explanation given by the assessee u/s 68 of the Act, on the basis of incriminating material found in the search of another person who has also been subject to assessment u/s 153A. We are of considered opinion that the assessment of the any assessee, whose explanation u/s 68 is being discredited on the basis of incriminating evidence found elsewhere alone, then the assessment of such other person should be u/s 153C as ‘other person’, and not u/s 147. In the case in hand a thorough examination of the reasons for reopening and the manner in which the ld. AO has relied the incriminating evidences and materials allegedly recovered in the hands of S.K. Jain and the intermediary that only go to show that Ld. AO has fallen in error in invoking powers of Section 147/148 in the absence of reasons of satisfaction being drawn u/s 153C by the Assessing Officer of the searched person. CIT(A) has fallen in error is not examining the assessment order to see as to how the AO exclusively and extensively relied only the alleged incriminating material found in the case of S.K. Jain Group of Companies to make addition under 147/148. Appeal of assessee allowed.
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