Case Law Details
Indian Redcross Society Vs ITO (ITAT Ahmedabad)
We note that the Ld. Assessing Officer has not made any additions and nor even discussed the issue on the basis of which the reassessment proceedings were initiated. The assessee had pointed out that the Ld. Assessing Officer had committed a factual inaccuracy by stating that a sum of Rs. 89,60,505/- was deposited in the bank account, whereas total cash deposits in the bank account held by the assessee were to the tune of Rs. 29,85,834/-only and this fact has not been controverted either by the Ld. Assessing Officer or the Ld. CIT(A). In fact, we note that Ld. CIT(A) in the appeal proceedings disposed of the challenge on this issue with the remarks “As per Ld. Assessing Officer, cash deposit was Rs.89,60,505/-whereas as per the appellant it has deposited Rs. 29,85,834/-only. Assessing Officer has accepted Appellant’s version. Hence, dispute on this aspect ends here”. Hence, as noted above, no addition was made by Ld. Assessing Officer in respect of cash deposits made in the bank account of the assessee, which was the basis on which reassessment was initiated for the captioned year. Now, therefore once the Revenue has accepted the assessee’s contentions in respect of the cash deposits, and has not made any addition on the basis of which reassessment was re-opened, and have proceeded to make additions on entirely different set of issues not forming part of notice issued u/s 148 of the Act, the issue for consideration is whether additions made during reassessment proceedings can be sustained. In our considered view, in the light of Hon’ble Supreme Court’s decision in the case of Pr. CIT v Lark Chemicals (P.) Ltd [2018] 99 taxmann.com 312 (SC) and jurisdictional High Court in the case of CIT v. Mohmed Juned Dadani [2013] 30 taxmann.com 1 (Gujarat), Ld. Assessing Officer is precluded from making the afore-said additions made in reassessment proceedings. In our view, once having accepted the assessee’s version regarding cash deposit of Rs. 89,60,505/-, wherein Ld. Assessing Officer did not make any addition on that count in reassessment proceedings (in fact, this aspect of cash deposit of Rs.89,60,505/- does not even find mention in the entire reassessment order), the additions made by Ld. Assessing Officer on other grounds not finding part of reasons for reopening assessment, are liable to be set-aside. Having held that additions made during reassessment proceedings deserve to be set aside on grounds of jurisdiction, we are not going into the individual grounds with respect to merits of the case.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This is an appeal filed by the assessee against the order of the ld. Comissioner of Income Tax (Appeals)-5, Vadodara in Appeal no. CIT(A)- Vadodara-5/107072017-18 vide order dated 09/09/2019 passed for the assessment year 2010-11.
2. The assessee has raised following grounds of appeal:-
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