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| The Tax Publishers2020 TaxPub(DT) 2407 (Pune-Trib) INCOME TAX ACT, 1961
Section 147
Where AO failed to make any addition on the ground on which assessment was reopened and made reassessment on other grounds, which were not subject matter of the reasons recorded for reopening of the assessment, the reassessment order was bad in law and void ab initio being without jurisdiction and hence, the same was liable to be quashed.
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Reassessment - Validity - AO did not make any addition on account of reasons that led to initiation of reassessment proceedings - Reassessment based on other grounds which were not subject matter of reasons recorded for reopening
AO found that there was difference in closing balance and subsequent opening balance of capital account. Accordingly, the AO concluded that the income chargeable to tax escaped assessment within the meaning of section 147. Subsequently, the AO passed an assessment order under section 147 making certain additions. Assessee contended that the AO did not make any addition on account of reasons which led to initiation of reassessment proceedings and thus, the said reassessment proceedings were bad in law. Held: Since AO failed to make any addition on the ground on which assessment was reopened and made reassessment on other grounds, which were not subject matter of the reasons recorded for reopening of the assessment, the said reassessment order was bad in law and void ab initio being without jurisdiction and hence, the same was quashed.
REFERRED : National Thermal Power Company Ltd. v. CIT (1998) 229 ITR 383 (SC) : 1998 TaxPub(DT) 0342 (SC), CIT v. Cheil Communications India (P) Ltd. (2013) 354 ITR 549 (Del) : 2013 TaxPub(DT) 1624 (Del-HC) CIT v. Jet Airways (I) Ltd. (2011) 337 ITR 236 (Bom) : 2011 TaxPub(DT) 0218 (Bom-HC), Amit Kanhayalal Gidwani v. ACIT [ITA No. 329/PUN/2017, dated 12-2-2020] Mr. Kailash Kanhaiyalal Gidwani v. ACIT [ITA No. 769/PUN/2014, dated 11-9-2019] : 2019 TaxPub(DT) 7122 (Pune-Trib)
FAVOUR : In assessee's favour
A.Y. :
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