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2018 (2) TMI 861 - AT - Income TaxReopening of assessment - addition on account of unexplained investment - addition on the basis of non-appearance of some of the persons before the AO - Held that:- Observation of CIT(A) indeed does not state that the sources are totally bogus and AO was in fact, asked to make further enquiries. Prima-facie the report of the Inspector does indicate that many of the people are existing and they have lands. Even though the Inspector seems to have issued summons to them to appear, the verification of the names of creditors with the names to whom summons were issued indicate that there are certain mismatches. For example, the first name ‘Bunga Padma Pedapatnam’ was not shown as creditor in the case of assessee. How summons could be issued to such person could not be examined. We are unable to understand how the conclusions were drawn just on the basis of non-appearance of some of the persons before the AO at Hyderabad, when ITI’s field enquiry revealed that they are existing and they have lands in their name. Some of the persons also reported to have been died by the time enquiries were conducted. Since so much time has lapsed and the affidavits furnished dt. 25- 10-2007 have not been disproved, the contentions of assessee in this regard has merit. Revenue wrongly relied on the reports in the case of company and on the order of CIT(A), Bhubaneswar and has not made any serious enquiry in assessee case to disprove the credits claimed. Thus direct the AO to accept the credits as such, as genuine. For reopening of assessment is to be placed on record that the contentions on the issue have merit. First of all, assessee has disclosed the investment and enclosed the confirmations to the original return which was accepted. There was a direction by Addl. CIT, Range-11 to reopen the assessment. Another offer (whose jurisdiction is not examined) has issued the notices, even though assessee was assessed earlier. The reasons for reopening were not communicated violating the directions of Hon'ble Supreme Court in the case of GKN Drive Shaft [2002 (11) TMI 7 - SUPREME Court] - Decided in favour of assessee
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