2014 (11) TMI 1037

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.... in law, learned CIT-A erred in upholding the reopening action of ld. AO which stands vitiated inter alia for following reasons : a. Total lack of tangible material/reasonable cause and justification. b. Absence of nexus (much less live nexus) between alleged information (unknown whether exists on file or not) and tentative inference drawn; c. Non application of mind much less independent application of mind. d. Total lack of clarity on nature of transaction in reasons recorded." 3. We have heard the arguments of both the sides and perused relevant material placed before us. The copy of reasons recorded for reopening of assessment is at page 1 & 2 of the assessee's paper book, the relevant portion of w....

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....o the following persons (beneficiary) as per details hereunder:- Amount (Rs.) Instrument No. Date Name of entry provider Name of bank Branch of bank A/c No. Entry giving account 500000 983304 19-Apr-03 Shimmer Marketing P Ltd. KVB Karol Bagh CA 3339   In view of the report received from the DIT (Inv.) New Delhi, and in view of the facts narrated above, it is clear that the assessee has not disclosed fully and truly all material facts necessary for its assessment for that assessment year. I have therefore, reason to believe that the sum of Rs. 500000/- chargeable to tax has escaped assessment. Thus the same is to be brought to tax under section 148 of the I.T. Act, 1961." 4. From ....

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....n pointed out whether this amount is in the form of gift, share application money or loan and whether this amount is shown in the assessee's books of account or not. At the time of hearing before us, it was pointed out by the learned counsel that the assessee was having 50,000 shares of Rs. 10/- each and the said shares were sold at cost to M/s Shimmer Marketing Pvt. Ltd. and the sum of Rs. 5 lakhs has been received as a sale consideration of shares which were already disclosed in the assessee's books of account. The purchase of shares as well as sale of shares both have been disclosed in the assessee's books of account and it has not generated either any profit or loss in the books of account nor any additional flow of capital in the asses....