Reassessment Held Invalid Where No Addition Made on Recorded Reasons: ITAT Chennai

Krishna Traders Vs DCIT (ITAT Chennai)

Reassessment Held Invalid Where No Addition Made on Recorded Reasons – Fresh Addition u/s 40A(3) Not Sustainable

The ITAT, Chennai allowed the assessee’s appeal by holding that the reassessment proceedings were legally unsustainable. The assessment was reopened on the ground of unexplained cash deposits of Rs. 2,03,09,275/-, however, while concluding the reassessment, the Assessing Officer did not make any addition on this issue and instead made a fresh disallowance of Rs. 3,08,45,000/- under Section 40A(3) for alle

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