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2015 (2) TMI 733 - DELHI HIGH COURTValidity of reopening of assessment - Held that:- The reasons to believe recorded by the AO and duly communicated to the assessee had noted that its name figures as one of the beneficiaries of alleged bogus transactions, which had cropped up during the investigation carried out by the Directorate of Investigation, Jhandewalan. The entries relating to the transactions and the sums of money were also included in tabular statement as part of the note. CIT v. M/s Kelvinator of India Ltd, (2010 (1) TMI 11 - SUPREME COURT OF INDIA ) states that the reassessment can be resorted to if there is “tangible material” justifying such move. The receipt of the investigation report in the opinion of the Court, undoubtedly constituted such tangible material outside the record, which were received by the AO after the assessment was processed under Section 143 (1). - Decided against assessee. Absence of notice under Section 143 (2) - Held that:- In the present case, there is no doubt at all that the assessee cooperated and appeared both in the assessment as well as reassessment proceedings. Therefore, it had deemed notice of the re-assessment proceedings. Its contentions were taken into account. In such circumstances, issuance of notice is a mere empty formality. Thus, the non-issuance of notice, in the opinion of the Court, shall not vitiate the assessment proceedings after due service of notice under Section 147. - Decided against assessee. Addition u/s 68 - Held that:- Both the purchasers did not respond to notices issued by the income tax authorities. Furthermore, the AO’s enquiry reveal that these purchasers had insubstantial means and could not reasonably be said to possess the means to make the investments that they did, in purchasing the assessee’s shares for the amounts reported by it. Besides, as to whether the transaction was genuine or not is a pure finding of fact which has concurrently been rendered against the assessee. - Decided against assessee.
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