TMI Blog2018 (1) TMI 588X X X X Extracts X X X X X X X X Extracts X X X X ..... also filed on record. It was, therefore, clear that A.O. recorded incorrect and non-existing reasons for reopening of the assessment. Therefore, on the face of it, the reopening of the assessment is void and bad in law. The case of the assessee is squarely covered by the decision of the Hon’ble Punjab & Haryana High Court in the case of Atlas Cycle Industries (1989 (4) TMI 48 - PUNJAB AND HARYANA High Court) - Decided in favour of assessee. - ITA.No.468/Del./2016, C.O.No.139/Del./2016 - - - Dated:- 8-12-2017 - Shri Bhavnesh Saini, Judicial Member And Shri Prashant Maharishi, Accountant Member For the Revenue : Ms. Ashima Neb, Sr. D.R. For the Cross Objector : Dr. Rakesh Gupta, Advocate ORDER PER BHAVNESH SAINI, J.M. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as return having filed in response to the notice under section 148 of the I.T. Act. The A.O. called for the explanation of assessee. The assessee specifically submitted before A.O. that assessee-company did not have any transaction including purchase and sale of shares etc., with M/s. Basant Marketing (P) Ltd., however, the opening credit balance was outstanding at the end of the year without any transaction. Confirmation copy of the account of the said party was filed before A.O. for verification. The A.O. also issued notice under section 133(6) to the concerned party in order to verify the fact stated by the assessee. The reply was received in which it was intimated by the concerned party that We have not entered into any transactio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecisions of the High Court held that if there is no addition in respect of the reasons recorded, no other addition can be made. The Ld. CIT(A) accordingly, held that assessment framed by the A.O. is void because A.O. did not have jurisdiction to make additions/disallowances to the returned income of the assessee. Once the reasons on which case was reopened under section 147 ceased to exist as admitted by the A.O, reopening of the assessment is bad in law. The appeal of the assessee was accordingly allowed. The Ld. CIT(A) did not decide the issue of disallowance under section 14A of the I.T. Act. The appeal of the assessee is accordingly allowed. 4. After hearing the rival contentions, we are of the view that no interference is called for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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