Valmik Thapar Vs PCIT-18 (Delhi High Court)
Delhi High Court held that once addition on the basis of which reasons recorded for reopening of assessment under section 147 of the Income Tax Act has been deleted, then, other addition made are not sustainable in law. Accordingly, appeal allowed.
Facts- Present petition is preferred by the assessee on the question of law that whether in view of the additions made on the basis of reasons recorded having been deleted in the appellant’s case on merits, does the reopening of assessment under Section 148 of the Act survive?
Conclusion- The Punjab and Haryana High Court in Majinder Singh Kang Versus Commissioner of Income-tax and Another:2010 SCC OnLine P&H 13401 has observed that a plain reading of Explanation 3 to section 147 clearly depicts that the Assessing Officer has power to make additions even on the ground on which reassessment notice might not have been issued in case during the reassessment proceedings, he arrives at a conclusion that some other income has escaped assessment which comes to his notice during the course of proceedings for reassessment under section 148 of the Act. The provision nowhere postulates or contemplates that it is only when there is some addition on the ground on which reassessment had been initiated, that the Assessing Officer can make additions on any other ground on the basis of which income may have escaped assessment. The reassessment proceedings, thus, in the present case cannot be held to be vitiated.
