Case Law Details
M.R. Enterprises Vs ITO (ITAT Delhi)
Admittedly, in the present case the assessment was reopened on the basis of cash deposited in the bank account and no addition has been made by the Assessing Officer regarding deposit of this amount. It is seen that the assessee has not raised this issue before the learned CIT(Appeals). However, this being a legal ground which goes to the very root of the jurisdiction, therefore, same is admitted and is being adjudicated. I have considered the objections of the assessee regarding framing of the assessment qua the issue other than the issue for which the assessment was reopened. There is no dispute that the assessee had made cash deposits in the bank account. It is categorically recorded by the Assessing Officer that no income-tax return was filed by the assessee. Therefore, at the time of reopening there was no explanation regarding source of cash deposits by the assessee. In my considered view it was sufficient for the Assessing Officer to form a belief that the income chargeable to tax has escaped assessment. Hence, he was justified to reopen the assessment u/s 147 of the Act.
After reopening of assessment, the Assessing Officer can in his wisdom proceed to make assessment regarding other issues as well. There is no prohibition under law that the Assessing Officer is required to confine assessment on the issue for which the assessment was reopened by him.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal, by the assessee, is directed against the order of the learned Commissioner of Income-tax (Appeals)-16, New Delhi, dated 27.05.2019, pertaining to the assessment year 2011-12. The assessee has raised following grounds of appeal:
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