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2023 (1) TMI 364 - AT - Income TaxReopening of assessment u/s 147 - Additions beyond the scope of the reason on which assessment was reopened - cash deposits made in the bank account unexplained - disallowance of expenditure claimed by the assessee against income earned from tuition - HELD THAT:- AO apparently has accepted the explanation of the assessee regarding the source of deposits in the bank account, since, he has not made any addition in the assessment order with reference to the cash deposits made in the bank account - on examining the return of income he found that against the tuition income the assessee has claimed expenses the genuineness of which, according to the AO, the assessee failed to establish through supporting evidence. Thus, ultimately while completing the assessment AO treated the expenditure claimed as bogus and disallowed it. This is the only addition made by the Assessing Officer while completing the assessment. As evident that the addition ultimately made by AO while completing the assessment has no connection with the income for escapement of which the AO reopened the assessment u/s 147 - Thus, it is patent and obvious, the AO reopened the assessment for assessing a particular item of income, whereas, instead of assessing that income he has added another item of income which was not the subject matter of reopening. AO can add other items of income along with the income for the escapement of which the assessment was reopened. However, without assessing that escaped income the Assessing Officer cannot make assessment of other items of income. Thus,no hesitation in holding that the addition made by disallowing the expenses claimed is unsustainable. Accordingly, direct the Assessing Officer to delete the addition. Assessee appeal allowed.
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