| The Tax Publishers2021 TaxPub(DT) 4029 (Chen-Trib) INCOME TAX ACT, 1961
Section 147
AO after issuing notice under section 148, accepted contention of assessee and held that income, for which he had initially formed a reason to believe, had escaped assessment, has as a matter of fact, not escaped assessment, it was not open to him independently to assess some other income, which subsequently came to his knowledge during the course of reassessment proceedings. Therefore, additions made by AO towards income derived from sale of land was deleted and reassessment order was quashed.
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Reassessment - AO made addition on other issue which subsequently came to his knowledge during the course of reassessment proceedings - No addition made as regards subject-matter of reasons recorded for reopening -
AO formed reasonable basis of escapement of income for taxing income which had escaped assessment on account of non-disclosure of money lent by assessee to his wife for purchase of agricultural lands. However, in reassessment proceedings, AO accepted explanation of assessee regarding money lent by the assessee to his wife and made no addition, but he made addition towards profit derived from sale of land under the head 'Income from business or profession' as against income declared by the assessee under the head 'income from capital gains'. Assessee contended that additions made towards profit derived from sale of land was not part of reasons recorded for reopening of assessment. Held: AO after issuing notice under section 148, accepted contention of assessee and held that income for which he had initially formed a reason to believe had escaped assessment, has as a matter of fact, not escaped assessment, it was not open to him independently to assess some other income, which subsequently came to his knowledge during the course of reassessment proceedings. Therefore, additions made by AO towards income derived from sale of land was deleted and reassessment order was quashed.
Supported by:Ranbaxy Laboratories Ltd. v. CIT (2011) 336 ITR 136 (Del-HC) : 2011 TaxPub(DT) 1457 (Del-HC), Martech Peripherals (P) Ltd. v. Dy. CIT, (2017) 394 ITR 733 (Mad) : 2017 TaxPub(DT) 1326 (Mad-HC) and CIT v. Jet Airways (I) Ltd. (2011) 331 ITR 236 (Bom-HC) : 2011 TaxPub(DT) 218 (Bom-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2008-09
IN THE ITAT, CHENNAI BENCH
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