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2021 (7) TMI 1024 - AT - Income TaxReopening of assessment u/s 147 - non-disclosure of loan given by the assessee to his wife Smt. Sulochana for purchase of agricultural land - whether the AO can limit his powers to assess income which is escaped from tax on the basis of reasons recorded for reopening of assessment or he could further proceed to any other income which is escaped from tax and which has subsequently came to his knowledge during the course of reassessment proceedings or not? - HELD THAT:- In this case, on perusal of facts available on record, it is abundantly clear that the AO has formed reasonable basis of escapement of income for taxing income escaped assessment on account of non-disclosure of money lent by the assessee to his wife for purchase of agricultural lands. However, in the reassessment proceedings, the AO has accepted the explanation of the assessee regarding money lent by the assessee to his wife and has not made any addition, but he has made addition towards profit deriving from sale of lands under the head ‘income from business or profession’ as against income declared by the assessee under the head ‘income from capital gains’ but said addition is not part of reasons recorded for reopening of assessment. Therefore, we are of the considered view that the reasons for reopening of assessment is fails and hence, the AO is not permitted to assess any other income which has escaped from tax and come to his knowledge subsequently during the course of reassessment proceedings. Therefore, we quash reassessment order passed by the AO. - Decided in favour of assessee.
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