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2021 (2) TMI 602

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..... or reopening the assessment as found in the assessment records from the reasons extracted in the assessment order, neither the assessee could defend its case properly nor the appellate authorities can adjudicate the matter. In the in the interest of the justice and fair play, we restore this issue to the files of the AO. The AO is directed to frame the assessment as per reasons recorded for reopening the assessment and supply the copy of the same reasons to the assessee, so that the assessee can defend itself. Legal grounds raised by the assessee are allowed for statistical purposes. Addition u/s 68 - We find that the appellant has furnished plethora of evidences which have not been considered by the AO. We find that there is not ev .....

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..... the provision of sec I53C of the Act does not apply as the document seized don t belong to the appellant. The Ld C1T(A) has ignored the amendment to sec 153C(1) w.e.f 01.06.2015 where the seized documents from third party relating to the assessee rules out action u/s 147 of the Act. 3. The Ld. CIT(A) has erred both in law and circumstances of the case in upholding the reassessment proceedings initiated u/s 147 of the IT Act ignoring the contention of appellant that the proceedings have been initiated by the AO without application of independent mind on the material, if any. provided by the Inv. Wing of the department. In view of the above defects in the compliances the resultant reassessment proceedings are required to be set aside. .....

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..... ction has been taken by the AO to verify information from investigation wing which is evident from the note of satisfaction given by Addl CIT/PrCIT u/s 151(1) of the Act. 4. The Ld. CIT(A) has erred both in law and in facts of the case in upholding the impugned reassessment proceedings ignoring the fact that the sanction u/s 151 of IT Act as provided with the copy of the reason recorded shows mechanical satisfaction by the Pr C1T, Delhi-6, New Delhi and the Ld. C1T(A) have held that such mechanical satisfaction are procedural infirmity which does not invalidate the reassessment proceedings 5. The Ld. C1T(A) has erred both in law and circumstances of the cases in upholding the addition of ₹ 1,00,00,000/- u/s 68 of the IT Act .....

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..... t records produced by the DR. 4. On perusal of the assessment records, we found that the reasons of reopening of assessment are materially different from the reasons extracted in the assessment order. In our considered view, when an assessment is reopened and reassessment order is framed, the entire quarrel revolves around the reasons recorded for reopening the assessment. Since, there is difference in the reasons recorded for reopening the assessment as found in the assessment records from the reasons extracted in the assessment order, neither the assessee could defend its case properly nor the appellate authorities can adjudicate the matter. 5. The counsel referring to various judicial decisions vehemently stated that the assessment .....

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