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2011 (3) TMI 327 - ITAT, MUMBAIUnder section 147 - Escaped assessment - When the assessment was framed, it was on the basis of estimation of income, and in the process of so estimating the income, production was estimated on the basis of power consumption as per bills raised by Maharashtra State Electricity Board - The income was not estimated on the basis of alleged power theft but on the basis of consumption of power as per MSEB records - It is thus clear that even as the ground of reopening was understatement of production on account of theft of power, the assessment actually framed was on the basis of estimate of production in the light of power consumption according to the MSEB billing - The very reason for which the assessment was reopened did not actually being a role in estimating the income as finally assessed - the Hon'ble Jurisdictional High Court it follows that when the very ground on which the reopening is resorted to is abandoned during the course of assessment proceedings; it cannot clearly be open to the AO to resort to other additions - Hence, the impugned reassessment order is devoid of any legally sustainable merits - Accordingly, uphold the grievance of the assessee and direct the AO to delete the impugned additions made in the course of reassessment proceedings.
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