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2022 (6) TMI 637 - AT - Income TaxScope of re-assessment proceedings u/s 147 - Benefit of exemption u/s. 10(23C)(iiiae) proposed to be denied - addition on account of Cash deposited in the Bank account - AO has not made any additions and nor even discussed the issue on the basis of which the reassessment proceedings were initiated. - HELD THAT:- The Courts on various occasions have held that when on the ground on which reopening of assessment was based, no addition was made by Assessing Officer, then Assessing Officer could not make additions on some other grounds which did not form part of reasons recorded by him. The Hon'ble Supreme Court in the case of Pr. CIT v Lark Chemicals (P.) Ltd [2018 (10) TMI 382 - SC ORDER]. held that where High Court having noticed that order passed consequent to reassessment, had not confirmed addition attributable to reasonable belief of Assessing Officer while issuing reopening notice, and set aside the said reassessment order, SLP filed against decision of High Court was to be dismissed. In the recent case of Aishwarya Rai Bachchan [2022 (3) TMI 524 - ITAT MUMBAI] held that where AO recorded reasons on basis of which reassessment was initiated, but did not make any addition in reassessment proceedings, in such case primary reason to believe that income had escaped assessment would fail and reassessment could not be treated as a valid order. Again in ACIT v. Everest Education Society [2021 (2) TMI 223 - ITAT PUNE] ITAT held that where reasons recorded and notice issued under section 147/148 was with respect to underutilization of income of assessee trust for which there had been no addition made, but Assessing Officer made addition on account of 'anonymous donation' under section 115BBC, Assessing Officer having acted beyond his jurisdiction, and therefore Commissioner (Appeals) had rightly directed Assessing Officer to delete addition so made. Unexplained cash deposits in bank account - As no addition was made by Ld. Assessing Officer in respect of cash deposits made in the bank account of the assessee, which was the basis on which reassessment was initiated for the captioned year. Now, therefore once the Revenue has accepted the assessee's contentions in respect of the cash deposits, and has not made any addition on the basis of which reassessment was re-opened, and have proceeded to make additions on entirely different set of issues not forming part of notice issued u/s. 148 of the Act, the issue for consideration is whether additions made during reassessment proceedings can be sustained. In our considered view, in the light of Hon'ble Supreme Court's decision in the case of Pr. CIT v Lark Chemicals (P.) Ltd.[supra] and jurisdictional High Court in the case of CIT v. Mohmed Juned Dadani [2013 (2) TMI 292 - GUJARAT HIGH COURT] Assessing Officer is precluded from making the afore-said additions made in reassessment proceedings. In our view, once having accepted the assessee's version regarding cash deposit of Rs. 89,60,505/-, wherein Ld. Assessing Officer did not make any addition on that count in reassessment proceedings (in fact, this aspect of cash deposit of Rs. 89,60,505/- does not even find mention in the entire reassessment order), the additions made by Ld. Assessing Officer on other grounds not finding part of reasons for reopening assessment, are liable to be set-aside. Having held that additions made during reassessment proceedings deserve to be set aside on grounds of jurisdiction, we are not going into the individual grounds with respect to merits of the case. - Decided in favour of assessee.
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