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TMI Blog2023 (10) TMI 975X X X X Extracts X X X X X X X X Extracts X X X X ..... t order in the hands of the assessee is invalid without giving any opportunity of being heard to the assessee - HELD THAT:- As higher appellate forums have upheld the findings of the CIT(A) that addition u/s 2(22)(e) can be made only in the hands of the registered shareholders. If the addition has to be done in the hands of other persons, as per the directions of CIT(A), the prescription of law ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted and disposed off together for the sake of convenience by this common order. 3. The grounds are also common. Various grounds have been raised but at the outset, Learned Counsel for the assessee has pressed Ground No.8. The same reads as under: 8. That in the facts and circumstances of the case and in law, the AO/CIT(A) has erred in placing reliance on the order of the CIT(A) passed in c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Hence in these cases, assessment was reopened and the addition was made as per provision of section 2(22)(e) of the Act. At the outset, in this case, Learned Counsel for the assessee referred to Explanation - 3 of Section 153, which reads as under: whereby an order referred to in clause (ii) of sub-section (3) any income is excluded from the total income of one person and held to be the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... car vs. ACIT reported in [2022] 137 taxmann.com 171 (Bombay). In the said case law, the Hon ble High Court has observed as under: It is apparent that the Assessing Officer has invoked the provisions of section 150 for issuing the impugned notices. This invocation was in turn based on an order made by the Commissioner (Appeals). This order contains no direction as contemplated by section 150. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (e) of the Act can be made only in the hands of the registered shareholders. If the addition has to be done in the hands of other persons, as per the directions of CIT(A), the prescription of law has to be followed. In the present case, admittedly, the directions have been issued without giving any opportunity to the assessee as contemplated by Explanation of Section 3 of Section 153 and as observ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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