2001 (11) TMI 8 - HC - Income Tax

Appeal not allowed on reassessment if same addition made in original assessment.

The High Court of Madras held that an appeal to the Commissioner of Income-tax (Appeals) could not be made against an addition in reassessment under ... 'Whether Tribunal is right in law in holding that any appeal to the CIT (Appeals) will lie against an addition made in the reassessment under section 147(b), when the same addition has been made in the original assessment under section 143(3) and has been confirmed by the CIT (Appeals)?' - It is only fair that if the assessee were to seek reopening of that appeal, the authorities permit such reopening. As the assessee has not appeared before us there is no way of ascertaining as to whether the assessee wants to have that appeal reopened. - The question referred to us is answered against the assessee and in favour of the Revenue. The High Court of Madras considered whether an appeal to the Commissioner of Income-tax (Appeals) would lie against an addition made in reassessment under section 147(b) of the Income-tax Act, when the same addition was made in the original assessment. The court ruled in favor of the Revenue, stating that the appeal against the original assessment could not be made the subject of the appeal against the reassessment. The assessee was considered to have been dealt with unfairly, and it was suggested that the authorities should permit the reopening of the appeal if the assessee wished to do so.