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2024 (2) TMI 1170 - AT - Income TaxReopening of assessment u/s 147 - profit earned from the commodity transaction was not shown in the return of income - AO jurisdiction to make addition in respect of the item which does not form basis for forming opinion that income escaped assessment of tax especially, in view of the fact that no addition was made in respect of item for which the reasons were issued for by issuance notice u/s. 148 of the Act HELD THAT:- This issue is no longer res integra by virtue of the judgment of Jet Airways (I) Ltd.,[2010 (4) TMI 431 - HIGH COURT OF BOMBAY], Ranbaxy Laboratories Ltd. vs. CIT, [2011 (6) TMI 4 - DELHI HIGH COURT] and Shri Ram Singh, [2008 (5) TMI 200 - RAJASTHAN HIGH COURT] wherein it is held that it is not permissible for the Assessing Officer to make any other addition, if no addition is made in respect of items of which reasons were recorded for issuance of notice u/s. 148. Thus law is settled to the extent that it is not permissible for the AO to make any other addition, if the AO had chosen not to make addition in respect of items for which reasons were recorded by issuing notice u/s. 148. As discussed, since the AO had chosen not to make addition in respect of the profit of Rs. 15,884/- earned from the commodity transaction made through Star Commodities, the AO had no jurisdiction to make addition u/s. 69. The very fact that the AO had sought make addition on the commodity transaction shows that the AO had no doubts about the genuineness of transaction. The addition of profit is separate and independent of addition made by the AO u/s. 69 of the Act. Thus, ratio of decision in the case of Jet Airways(I) Ltd. [2010 (4) TMI 431 - HIGH COURT OF BOMBAY] is squarely applicable to the facts of present case. Therefore, the AO had no jurisdiction to make addition. We, therefore, direct the AO to delete the addition and the appeal filed by the assessee stands allowed.
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