TMI Blog2022 (6) TMI 637X X X X Extracts X X X X X X X X Extracts X X X X ..... I] held that where AO recorded reasons on basis of which reassessment was initiated, but did not make any addition in reassessment proceedings, in such case primary reason to believe that income had escaped assessment would fail and reassessment could not be treated as a valid order. Again in ACIT v. Everest Education Society [ 2021 (2) TMI 223 - ITAT PUNE] ITAT held that where reasons recorded and notice issued under section 147/148 was with respect to underutilization of income of assessee trust for which there had been no addition made, but Assessing Officer made addition on account of 'anonymous donation' under section 115BBC, Assessing Officer having acted beyond his jurisdiction, and therefore Commissioner (Appeals) had rightly directed Assessing Officer to delete addition so made. Unexplained cash deposits in bank account - As no addition was made by Ld. Assessing Officer in respect of cash deposits made in the bank account of the assessee, which was the basis on which reassessment was initiated for the captioned year. Now, therefore once the Revenue has accepted the assessee's contentions in respect of the cash deposits, and has not made any addition on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the addition of Rs. 23,41,940/- made by the ITO(Exemption) Vadodara u/s. 10(23C) (iiiae) of the IT. Act, although it has been accepted by the learned CIT(A) that appellant is recognized organization u/s. 10(22A) of the Act as notified by the CBDT. (4) The levy of interest u/s. 234A of the I.T. Act and u/s. 234B of the I.T. Act. is not justified. (5) Intimation of penalty proceeding u/s. 271(1)(c) of the I.T. Act. is not justified. (6) Your appellant craves leave to add, amend, alter, edit, delete, modify or change all or any of the grounds of appeal before the appeal is heard and decided. 3. The brief facts of the case are that the assessee is a public trust running blood bank. The assessee is one of the branches of the Indian Red Cross Society situated in State of Gujarat at Godhara. The assessee conducts blood test in their laboratory for different diseases and supplies the same to hospital, both Government and private, against the letters from an authorized doctor at concessional rate. During the year, Ld. Assessing Officer noticed that the assessee had deposited a sum of Rs. 89,60,505/- in its saving bank account but it had not filed return of income for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment was made i.e. cash deposits of Rs. 89,60,505/- in saving account of the assessee, the ld. Assessing Officer is precluded from making additions on some other grounds which did not form part of the reasons recorded. The assessee submitted that since no cash of Rs. 89,60,505/- as alleged, was deposited in saving bank account with the Bank of India and no addition is made on this ground in the assessment order and addition was made by Ld. Assessing Officer on account of non-grant of exemption u/s. 10(23C)(iiiae), reopening of assessment proceedings are bad in law and deserves to be quashed. The ld. CIT(A) however rejected the assessee's arguments and upheld the additions made in the assessment order by observing that assessee could not demonstrate logic of high testing fee charged and as to how it was functioning for philanthropic purposes given the fact that the surplus during the impugned Assessment Year stood at 61% of total receipt. Ld. CIT(A) accordingly dismissed the assessee's appeal and upheld order of Ld. Assessing Officer. 5. Before us, Ld. Counsel for the assessee at the outset challenged reopening of assessment on the ground that reassessment was initiate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee on the initiation of reassessment proceeding being bad in law and hence void ab-initio. The Courts on various occasions have held that when on the ground on which reopening of assessment was based, no addition was made by Assessing Officer, then Assessing Officer could not make additions on some other grounds which did not form part of reasons recorded by him. The Hon'ble Supreme Court in the case of Pr. CIT v Lark Chemicals (P.) Ltd. [2018] 99 taxmann.com 312 (SC) held that where High Court having noticed that order passed consequent to reassessment, had not confirmed addition attributable to reasonable belief of Assessing Officer while issuing reopening notice, and set aside the said reassessment order, SLP filed against decision of High Court was to be dismissed. In the case of CIT v. Mohmed Juned Dadani [2013] 30 taxmann.com 1 (Gujarat), the Hon'ble Gujarat High Court held that when on ground on which reopening of assessment was based, no addition was made by Assessing Officer, he could not make additions on some other grounds which did not form part of reasons recorded by him. In the case of CIT v. Jet Airways (I) Ltd. [2010] 195 Taxman 117 (Bombay), the Bombay Hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of which the reassessment proceedings were initiated. The assessee had pointed out that the Ld. Assessing Officer had committed a factual inaccuracy by stating that a sum of Rs. 89,60,505/- was deposited in the bank account, whereas total cash deposits in the bank account held by the assessee were to the tune of Rs. 29,85,834/- only and this fact has not been controverted either by the Ld. Assessing Officer or the Ld. CIT(A). In fact, we note that Ld. CIT(A) in the appeal proceedings disposed of the challenge on this issue with the remarks As per Ld. Assessing Officer, cash deposit was Rs. 89,60,505/- whereas as per the appellant it has deposited Rs. 29,85,834/- only. Assessing Officer has accepted Appellant's version. Hence, dispute on this aspect ends here . Hence, as noted above, no addition was made by Ld. Assessing Officer in respect of cash deposits made in the bank account of the assessee, which was the basis on which reassessment was initiated for the captioned year. Now, therefore once the Revenue has accepted the assessee's contentions in respect of the cash deposits, and has not made any addition on the basis of which reassessment was re-opened, and have procee ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
