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2019 (5) TMI 1787 - AT - Income TaxReopening of assessment u/s 147 - mandation of recording reasons - Unexplained money u/s 69A - addition being the amount of sale proceeds of machinery - in the re-assessment proceedings, wherein no addition was made on account of reasons recorded for reopening the assessment, is the assessment order passed thereafter is vitiated in law? - HELD THAT:- It is incumbent upon the Assessing Officer first, to record reasons for reopening the assessment on account of escapement of income of particular source of income during particular assessment year, which comes to his notice and then the Assessing Officer is to pass an order of assessment by assessing or re-assessing such income and also any other income in the hands of assessee. However, where the Assessing Officer makes no addition on account of reasons recorded for reopening the assessment, then he is precluded from making any other addition on account of any other sources for which no reasons were recorded for reopening the assessment. As relying on Jet Airways [2010 (4) TMI 431 - HIGH COURT OF BOMBAY] wherein no addition has been made in the hands of assessee on account of reasons recorded for reopening the assessment, the assessment order assessing any other income in the hands of assessee is not sustainable. We thus, hold that re-assessment proceedings completed in the case of assessee, wherein no addition has been made on account of reasons recorded for reopening the assessment cannot stand and is bad in law. The additional ground of appeal raised by assessee is thus, allowed.
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