TMI Blog2017 (6) TMI 484X X X X Extracts X X X X X X X X Extracts X X X X ..... unds such as disallowance of expenses and addition on account of share capital money without first issue a notice 148 of the I.T. Act. The AO was therefore not justified in reopening of the assessment when the reasons for the initiation of reassessment proceedings ceased to survive/exist. - Decided in favour of assessee. - ITA Nos. 706, 707,708/Del/2017 - - - Dated:- 7-6-2017 - SHRI BHAVNESH SAINI, JUDICIAL MEMBER For The Assessee : Shri N.K. Jain, Advocate Ms. Natasha, Advocate For The Department : Ms.Bedobani, Sr. DR Per BHAVNESH SAINI, Judicial Member ORDER All the appeals by assessee are directed against different orders of Ld. CIT(A) Rohtak dated 25th November, 2016 for asstt. Years 2009- 10, 2010-11, 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he I.T. Act vide order dated 30th March, 2015 whereby the returned income declared in a sum of ₹ 1,99,990/- was accepted and further additions were made on account of disallowance of rent and electricity charges for a sum of ₹ 30,000/- and ₹ 36,294/-. Further addition was made on account of unexplained share application money for a sum of ₹ 14,50,000/- u/s 68 of the I.T. Act. 5. The assessee challenged the reopening of the assessment and additions on merit However appeal of assessee has been dismissed. 6. The assessee in the present appeal challenged the assumption of jurisdiction u/s 147 / 148 of the I.T. Act as well as above additions on merits. 7. Ld. Counsel for assessee submitted that AO has recorded re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment. Ld. DR submitted that on making the above additions the profit of the assessee has increased. Therefore, there is no illegality in initiation of the reassessment proceedings. 8. I have considered the rival submissions. It is well settled law that validity of the reassessment proceedings have to be determined with reference to the reasons recorded for reopening of the assessment. Copy of which is filed at page 1 of the paper book which reads as under :- M/s. Lamba Bricks Co. Pvt. Ltd. H. No. 1751, Sec-13, Bhiwani A.Y. 2009-10 PAN-AABCL0419J Reasons for re-opening the case u/s 148 read with section 147 of the Income-tax Act, 1961. Return declaring an income of ₹ 1,99,990/- filed on 14.09.2009 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wance of ₹ 59,725/- and total income is works out at ₹ 2,59,715/-. I have therefore reasons to believe that income of ₹ 59,725/- chargeable to tax has escaped assessment for the A.Y. 2009-10 and also any other income chargeable to tax which has escaped assessment and which comes to the notice of the AO subsequently in the course of the proceedings under this section. Notice under section 148 of the Income Tax Act, 1961 issued. Date 13.2.2014 (Jitender Singh) Asstt. Commissioner of Income-tax Bhiwani 8.1 It is admitted fact that the assessee filed return of income declaring income of ₹ 1,99,990/-. The AO while passing the reassessment order accepted the returned income but mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 148. 10. Hon ble Delhi High Court in the case of Ranbaxy Laboratory Pvt. Ltd. vs. CIT 336 ITR 136 similarly held that items of income said to have escaped assessment on which reassessment proposed not added but other deductions reduced not permissible . 11. Considering the above discussion, in the light of the reasons recorded for reopening of assessment and in the light of above decisions, it is clear that the very basis of initiation of reassessment proceedings for which reasons to believe were recorded were income escaping assessment in respect of lower net profit, the same having not been escaped, the AO proceeded to make additions on account of disallowance of rent and electricity charges and additions made on acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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