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2019 (4) TMI 1649 - ITAT CHANDIGARHReopening of assessment u/s 147 - non independent application of mind by AO - Addition of opening cash in hand - A.O. acted only on the basis of the information received from the Investigation Wing - borrowed satisfaction - no addition based on reasons recorded - HELD THAT:- When the closing balance as on 31.3.2008 i.e. the preceding year was considered to be genuine and correct, then there was no reason to doubt the same balance taken by the assessee on 01.04.2008 as opening cash in hand for the year under consideration. In that view of the matter, the addition made by the A.O. and sustained by the CIT(A) deserves to be deleted. A.O. acted upon the information and recorded the reasons that the assessee had deposited a sum in his saving bank account. No addition was made for the said amount and the explanation given by the assessee was accepted, which shows that the A.O. only acted upon the information received by him and did not apply his own mind. As relying on SIGNATURE HOTELS (P) LTD. VERSUS INCOME TAX OFFICER AND ANR. [2011 (7) TMI 361 - DELHI HIGH COURT] the re-assessment proceedings were not valid and were liable to be quashed. Viewed from any angle, the addition made by the A.O. and sustained by the CIT(A) was not justified - Decided in favour of assessee.
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