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Issues Involved:
1. Validity of Reassessment Proceedings. 2. Deletion of Addition u/s 68 of the Income-tax Act. Summary: 1. Validity of Reassessment Proceedings: The revenue challenged the CIT (A)'s decision on the initiation of reassessment proceedings. The DR argued that the assessee did not make full and true disclosures, justifying the reopening under section 148 based on information from the Investigation Wing about accommodation entries. The DR cited multiple case laws to support the validity of the reopening. The AR countered that the Assessing Officer (AO) did not apply independent judgment and relied on borrowed satisfaction, which is not permissible. The Tribunal concluded that since there was no original assessment u/s 143(3), there was no change of opinion. The information from the Investigation Wing was deemed sufficient to justify reopening. The Tribunal allowed the revenue's appeal on this issue, holding that the reassessment proceedings were sustainable in law. 2. Deletion of Addition u/s 68 of the Income-tax Act: The revenue contested the deletion of Rs. 36 lacs added by the AO as bogus cash credits u/s 68. The DR argued that the assessee failed to provide supporting proof for the sale of stock and the parties involved. The AR provided evidence of the sale of shares through M/s. Batra Investments, including audited balance sheets, bank statements, and ledger accounts. The Tribunal found that the assessee had adequately explained the credits, which represented the sale proceeds of shares held as opening stock. The Tribunal cited previous ITAT decisions where similar transactions were held genuine. The Tribunal upheld the CIT (A)'s decision to delete the addition, confirming that the transactions were genuine and the revenue failed to prove otherwise. Conclusion: The Tribunal partly allowed the revenue's appeal, validating the reassessment proceedings but upholding the deletion of the addition u/s 68. The order was pronounced in open court on February 29, 2012.
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