The Tax Publishers2021 TaxPub(DT) 0904 (Pune-Trib)

INCOME TAX ACT, 1961

Section 147

Since addition made by AO under section 147 did not emanate from the reasons recorded by AO and for which notice under section 148 was issued, lacks legality and thus was required to be deleted.

Reassessment - Validity - Addition not emanating from reasons recorded for reassessment -

Assessee filed appeal against the addition made by AO under section 147, holding that this addition ought not to have been made as the same did not emanate from the reasons recorded by AO and there was no addition on the basis of which the reassessment was initiated. Held: On a conjoint reading of the 'reasons' along with the order under section 147, it was pulpable that no addition arising from the reasons for the reassessment was made. An altogether separate addition was made, which admittedly did not have any connection with the initiation of re-assessment. In case of CIT v. Jet Airways (I) Ltd. (2011) 331 ITR 236 (Bom-HC) : 2011 TaxPub(DT) 218 (Bom-HC) it was held that AO cannot proceed with re-assessment if the grounds mentioned in re-assessment are non-existent i.e., if no addition is made on that score. Thus, addition made in the reassessment on a ground different from the one for which notice under section 148 was issued, lacks legality. The same was, therefore, deleted.

Followed:CIT v. Jet Airways (I) Ltd. (2011) 331 ITR 236 (Bom-HC) : 2011 TaxPub(DT) 218 (Bom-HC).

REFERRED :

FAVOUR : In favour of assessee.

A.Y. : 2009-10



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