Case Law Details
Abdul Rashid Sofi C/o Peer & Co. Vs ITO (ITAT Amritsar)
ITAT Amritsar held that reassessment proceedings initiated on recorded reasons on belief that the specific income has escaped assessment, however, addition on some other income not having any connection with the recorded reason is erred in law.
Facts-
The assessee’ s case is reopened u/s 148 of the Act on the ground that the assessee is one of the settlers of M/s Mars Educational Trust, (M.E.T.) situated at village Sangam Tehsil Bijbehara Distt. The assessee is jointly and separately owner of land and building with the trust and assessee took loan from bank after mortgaging the their land and building. The total value of the assets was Rs.9,46,05,848/- and also a capital fund Rs. 1,33,75,750/- was as source of the investment.
During assessment proceeding the ld. AO did not illuminate any point related to recorded reason which was formed on the basis of reasons to believe. But the entire addition was made on basis of income from petrol pump amount of Rs.6 lac and agricultural income Rs.1,75 ,000/-. The assessee filed a return related said assessment year U/s 139 bearing acknowledgement No.546 on dated 27.03.2009. The notice u/s 148 was issued and assessee made the reply of the said notice, but entire addition was made without considering a single point of the recorded reason. The assessee filed appeal before the ld. CIT(A) & relief was granted in appeal amount to Rs. 1,75,000/-. But other point related to addition Rs.6 lac was upheld. Also, the legal point was not adjudicated by the ld. CIT(A) in the impugned appeal order.
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