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2024 (6) TMI 595 - AT - Income TaxReopening of assessment u/s 147 - reopening of reason that he held a bonafide belief that investment made by the assessee towards the purchase of the subject property was sourced from her undisclosed income - HELD THAT - As observed by the AO that the investment in the subject property as explained by the assessee based on corroborative documentary evidence was sourced from her disclosed sources. A.O. had though neither made any addition as regards the investment that was claimed by the assessee to have been made towards the subject property nor drawn any adverse inferences as regards her claim that the said investment was sourced from her disclosed sources. A.O. had made an independent addition u/s. 56(2)(vii)(b) of the Act. i.e. towards the difference between the value adopted by the Stamp valuation authority/Segment rate and purchase consideration of the subject property. We are of a strong conviction that now when the A.O. had not made any addition as regards the very basis on which proceedings u/s. 147 of the Act were initiated in the case of the assessee i.e. the source of the investment in the subject property therefore he was divested of his jurisdiction from making an independent addition u/s 56(2)(vii)(b) - difference between the stamp duty value/segment rate of the subject property fixed by the Sub-Registrar Bilaspur at Rs. 43, 03, 700/- (supra) and the consideration for which the assessee had purchased the same. As the A.O. had traversed beyond the scope of his jurisdiction and had made an addition u/s. 56(2)(vii)(b) we are unable to concur with the view taken by the lower authorities. Accordingly the order passed by the A.O u/s. 144 r.w.s. 147 is quashed for want of valid assumption of jurisdiction on his part. Thus the revised ground of appeal No.2 is allowed..
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