Case Law Details
Nilesh Ajit Kumar Jain Vs ITO (ITAT Mumbai)
A perusal of the assessment order shows that the assessment was reopened to examine misuse of Client Code Modification for tax evasion. No addition was made by the Assessing Officer in respect of the issue for which the assessment was reopened. It is a well settled law that where no addition is made on the issue for which the assessment is reopened, it is not open to the Assessing Officer to make independent addition for which he had not recorded reason to believe for issuing notice u/s 148 of the Act.
Thus, in view of the settled legal position, we find no error in the action of Assessing Officer in not travelling to other issues for making addition once no addition was made on the issue for which assessment was reopened. The PCIT clearly erred in invoking revisional jurisdiction on an issue, which the Assessing Officer could not have examined in reassessment proceedings.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal by the Revenue is directed against the order of Principal Commissioner of Income Tax-1, Nasik (in short ‘the PCIT’) dated 28/03/2019 passed under section 263 of the Income Tax Act, 1961 (in short ‘ the Act’).
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