TMI Blog2023 (9) TMI 613X X X X Extracts X X X X X X X X Extracts X X X X ..... de. As the ground on which the reopening has been done itself no more survives and no addition has resulted from the reasons on which the reopening has been done, obviously the reasons of the reopening itself has failed and, therefore, the reopening proceedings itself has failed and assessment proceeding is quashed. The arguments raised by the ld.Sr. DR that the Explanation 3 to Section 147 of the Act protects the assessment even though no addition has been made, does not stand to reason insofar as the wordings used in the said section is that, the AO may assess or reassess the income in respect of any issue, which has escaped assessment, and such issue comes to his notice subsequently in the course of the proceedings under this sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anshu Jena, Advocate. For the Revenue : Shri S.C.Mohanty, Sr. DR ORDER This is an appeal filed by the assessee against the order of the ld. CIT(A)-2, Bhubaneswar, dated 22.03.2023, passed in I.T.Appeal No.Cuttack/10185/2017-18 for the assessment year 2011-2012. 2. In the appeal of the assessee, the assessee has raised the legal ground regarding reopening of the assessment and also the ground against the estimation of the income of the assessee. 3. In respect of the reopening, it was submitted by the ld. AR that in para 2 of the assessment order, the AO has categorically mentioned that the reopening has been done on the ground that there was a difference between purchases as recorded in the audited accounts and as the pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the issue of reopening in view of the Explanation 3 to Section 147 of the Act, the reopening is validly made. Just because no addition has been made on the issue on which the reopening has been done, does not bar the AO from making additions on other issues. It was the submission that the reopening was required to be upheld. 6. In regard to the estimation of income, it was submitted by the ld. Sr. DR that considering the nature of business of the assessee, the income of the assessee has been estimated at 4%. It was the submission that no evidence has been produced by the assessee to show that his income should be estimated at lower figures. It was the submission that the assessee has not been able to produce the evidence of the valuati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e course of the proceedings under this section, notwithstanding that the reasons for such issue have not been included in the reasons recorded under sub-section (2) of section 148. Thus, the reasons on which the reopening as done must first survive and only when such reason survive then in the course of such assessment, the AO finds other issues which have come to his notice, liberty is granted to the AO to make addition on this additional issues also. When the primary issue fails, the reopening fails along with that. In the present case the reopening has been done because there was allegation of understatement in respect of the purchases. When no addition has been made on that count and that issue has already been reconciled by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
