Sponsored
    Follow Us:

Case Law Details

Case Name : Rajeev Kumar Goyal Vs ITO (ITAT Agra)
Appeal Number : I.T.A. No.:116/Agra/2012
Date of Judgement/Order : 06/06/2014
Related Assessment Year :
Become a Premium member to Download. If you are already a Premium member, Login here to access.
Sponsored
CA Prarthana Jalan
Hon’ble Agra ITAT has held that If no additions made on grounds set for reasons for reassessment, than no addition can be made on other aspects The legal position is fairly well settled on the issue that in a reassessment proceeding, when no additions are made in respect of the income, purportedly escaping the  assessment, set out in the reasons for re-opening the assessment, no other additions can be made either. As a matter of fact, the very reassessment fails in such a situation. The underlying principle is not difficult to fathom. The re-assessment proceedings are for the purpose of income escaping the assessment, as set out in the reasons recorded, and when no additions are made in respect of the reasons recorded, the very foundation of reassessment proceedings ceases to legally sustainable. Of course, once additions are made in respect of any of the items set out in the reasons recorded for re-opening the assessment, it is open to the Assessing Officer to make other items, as he may deem fit, as well.
In a rather recent case of CIT Vs Jet Airways (331 ITR 236), elaborating on this settled legal position, Hon’ble Bombay High Court has observed that if after issuing a notice under s. 148, he Assessing Officer does not hold that the income which he has initially formed a reason to believe had escaped assessment, is not required to be added to the assesee’s   taxable income, it is not open to him to independently assess some other income. Their Lordships have added that, “If he intends to do so, a fresh notice under s. 148 would be necessary, the legality of which would be tested in the event of a challenge by the assessee”
In the present case, seemingly no additions have been made in respect of the items set out in the reasons for reopening the assessment, as reproduced earlier in this order, and yet the Assessing Officer has made several other additions to income.

Sponsored

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Your email address will not be published. Required fields are marked *

Sponsored
Sponsored
Ads Free tax News and Updates
Sponsored
Search Post by Date
December 2024
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
3031