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2021 (6) TMI 234 - AT - Income TaxReopening of assessment u/s 147 - addition being profit earned by the assessee on commodity trading - as argued when no addition is made on the issue on which the assessment was reopened, is it open for the Assessing Officer to make additions or disallowance on other issues which were not the reason recorded for reopening the assessment? - HELD THAT:- AO has not made an addition being profit earned by the assessee on commodity trading which was the reasons for the Assessing Officer to believe that income subject to tax has escaped assessment, based on which, reasons were recorded and reopening of assessment was done u/s 147. As relying on case of M/s. Infinity Infotech Parks Ltd. [2014 (9) TMI 1142 - CALCUTTA HIGH COURT] AO cannot make additions on issues which had not formed the basis of reopening of assessment, when no additions has been made in the assessment order passed u/s 147 r.w.s. 143(3) of the Act on the issue, based on which the reasons were recorded and assessment reopened. Thus, we hold that the assessment order passed u/s 147 r.w.s. 143(3) of the Act on 29/08/2018, is bad in law. On merits, we find that the Assessing Officer has issued notice u/s 133(6) of the Act to NMCE and that NMCE has confirmed all the transactions. The assessee has filed voluminous evidence and confirmations. These evidences, were not controverted by the Assessing Officer. - Decided in favour of assessee.
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