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2014 (4) TMI 931 - AT - Income TaxReassessment u/s 147 of the Act – reasons recorded for initiation of reassessment proceedings - Held that:- When the reasons for reopening the assessment itself is incorrect, the AO accepts that position by not making related addition, no further additions can be made in the course of such reassessment proceedings - The very initiation of reassessment proceedings in such a case ceases to be of any effect – Relying upon N.D. Bhatt, IAC v. I.B.M. World Trade Corpn. [1993 (7) TMI 7 - BOMBAY High Court] - the AO has not challenged the CIT(A)'s deletion of quantum addition made on the basis of reasons recorded for reopening the assessment - the reassessment proceedings were infructuous and no other additions could have been made by the AO either - CIT(A) has given categorical findings which run contrary to the reasons recorded while reopening the assessment and yet the revenue authorities have not raised, either in appeal or by any other mode, even a whisper against such findings which have thus reached finality - The very reassessment proceedings were also based on erroneous reading of facts which cannot lead to a legally sustainable addition – Decided in favour of Assessee.
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