Other addition in reassessment proceedings not sustainable if Foundational Additions are deleted 

Meenakshi Dhanaji Patil Vs ITO (ITAT Pune)

Assessing Officer can make `other addition’ in the reassessment proceedings, provided, the `foundational addition’ is made. When this proposition is taken to a next level, no different consequences will emerge, if the `foundational addition’ is itself finally deleted in an appeal. In such a scenario, the `other addition’ made by the Assessing Officer would automatically cease to stand in isolation. This view has been affirmed by the Hon’ble jurisdictional High Court in CIT vs. Adhunik Niryat Ispat Ltd. (2011) 63 DTR 212 (Del).

FULL TEXT OF THE ORDER OF ITAT PUNE

This assessee’s appeal for AY 2011-12 arises against the CIT(A)-2, Kolhapur’s order dated 19-08-2019 passed in case No. Kop/CIT(A)-2/10201/2018-19 involving proceedings under Section 143(3) r.w.s.147 of the Income Tax Act, 1961 in short the Act.

Heard both the parties. Case file perused.

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