TMI Blog2011 (3) TMI 327X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - ITA Nos. 7900 and 7901/Mum/2010 - - - Dated:- 3-3-2011 - Pramod Kumar, J. Dr. P. Daniel for the Appellant Satveer Singh for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance (Income Tax) informing the Assessing Officer about theft of electricity by the assessee and some other persons, the assessments were reopened by the Assessing Officer. While the evidence of such information is not placed on record, as per the information obtained by the assessee under Right to Information Act, according to MSEB, there was no case of theft of electricity by the assessee during the period 1.4.1997 to 31.3.2001. While reopening the assessments, the AO was of the view that the logical inference about the theft of electricity by the assessee is that by doing so, the assessee has understated the production and sales commensurate with the theft of the energy. It was observed by the AO that "in view of these facts there is a r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actually committed theft of electricity. 5. I have heard the rival contentions, perused the material on record and duly considered the factual matrix of the case. 6. I have noted that the fundamental basis for reopening the assessment was alleged theft of electricity but then as per information produced before me by the assessee, there was no case of theft of electricity against the assessee. The information has been obtained by the assessee under RTI and there is no material before me to controvert the information so obtained by the assessee. It would, therefore, appear that the very foundation of the impugned reassessment proceedings is devoid of legally sustainable merits. That apart, while the assessment is reopened on the groun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llows 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. In view of these discussions, in my considered view the impugned reassessment order is devoid of any legally sustainable merits. I, accordingly, uphold the grievance of the assessee and direct the AO to delete the impugned additions made in the course of reassessment proceedings. 7. In view of the fact that I have decided the assessment on the basis of above legal grounds, it is not necessary to adjudicate other grounds raised by the assessee. These grievances, under the present set of facts, are academic and do not call for any adjudication. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
