TMI Blog2019 (5) TMI 1787X X X X Extracts X X X X X X X X Extracts X X X X ..... pass an order of assessment by assessing or re-assessing such income and also any other income in the hands of assessee. However, where the Assessing Officer makes no addition on account of reasons recorded for reopening the assessment, then he is precluded from making any other addition on account of any other sources for which no reasons were recorded for reopening the assessment. As relying on Jet Airways [ 2010 (4) TMI 431 - HIGH COURT OF BOMBAY ] wherein no addition has been made in the hands of assessee on account of reasons recorded for reopening the assessment, the assessment order assessing any other income in the hands of assessee is not sustainable. We thus, hold that re-assessment proceedings completed in the case of asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ef] erred in confirming the addition of ₹ 4,00,000/- being the amount of sale proceeds of machinery as unexplained money u/s 69A made by the Income Tax Officer, Ward-1, Ratnagiri, (hereinafter referred to as the ITO'). The appellant submits as under, without prejudice to each other: a. The amount being a credit to the capital account no addition can be made of such a credit transaction under section 69A it being not in the nature of an unexplained investment. b. The amount credited to the capital account being the advance against sale of machinery, thus the source of the credit having been fully explained by the appellant the amount is not taxable even under section 68 as unexplained credit. The appellant prays that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessee pointed out that the additional ground of appeal is legal issue, which may be admitted and once the same is decided, then no other grounds of appeal need to be adjudicated. 6. First, we shall take up additional ground of appeal raised by the assessee, wherein the assessee is aggrieved by re-assessment order passed under section 147 r.w.s. 143(3) of the Act. The plea of assessee before us is that assessment was reopened in the hands of assessee on account of insurance premium paid to Tata AIG Life Insurance. Our attention was drawn to reasons recorded under section 147 of the Act by the Assessing Officer, which are placed at page 1 of Paper Book. The learned Authorized Representative for the assessee pointed out that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year 2007-08. Therefore, he had reason to believe that there was escapement of income to the tune of ₹ 15 lakhs from assessment within meaning of section 147 of the Act. Consequently, notice under section 148 of the Act was issued for assessment year 2007-08. Hence, reasons which were recorded for reopening the assessment were limited to the investment of ₹ 15 lakhs in life insurance of Tata AIG. The perusal of assessment records passed under section 147 r.w.s. 143(3) of the Act reveals that no such addition was made in the hands of assessee on this count. However, various other additions have been made. 9. The question which arises is that in the re-assessment proceedings, wherein no addition was made on account of reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stand answered against the Revenue and in favour of the assessee. The appeal is, accordingly, dismissed. There shall be no order as to costs. 11. Applying the said proposition to the facts of present case, wherein no addition has been made in the hands of assessee on account of reasons recorded for reopening the assessment, the assessment order assessing any other income in the hands of assessee is not sustainable. We thus, hold that re-assessment proceedings completed in the case of assessee, wherein no addition has been made on account of reasons recorded for reopening the assessment cannot stand and is bad in law. The additional ground of appeal raised by assessee is thus, allowed. 12. Now, coming to the Revenue's appeal in I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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