Reassessment cannot survive on an unrelated ground when no addition is made on the recorded reason for reopening.

A reassessment reopened on a mismatch between gross receipts and TDS certificates could not be sustained when the mismatch was explained and no addition was made on that recorded reason. The addition ultimately made on an unrelated issue of alleged non-deduction of tax at source on freight payments was held impermissible, because reassessment must stand on the basis recorded for reopening. Since the original ground for reopening failed, the reassessment and the resulting addition were unsustainable, and relief followed for the assessee.

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Issues: Whether the reassessment could be sustained when the income ultimately brought to tax was not the income for which the assessment was reopened.

Analysis: The recorded reasons for reopening were based on a mismatch between gross receipts shown in the return and the receipts reflected in TDS certificates. The assessee explained the mismatch, and no addition was made on that basis. The addition, instead, was made on a different ground relating to alleged non-deduction of tax at source on freight payments. The principle applied was that, where the very basis of reopening does not survive and no addition is made on the recorded reason, the reassessment cannot be sustained on an unrelated ground.

Conclusion: The reassessment and the addition sustained by the lower authorities were held to be unsustainable, and relief was granted to the assessee.

Final Conclusion: The appeal succeeded because the reassessment could not survive once the recorded reason for reopening failed and the addition was made on a different issue.

Ratio Decidendi: An assessment reopened on specified recorded reasons cannot be sustained by making an addition on an unrelated ground when no addition survives on the original reason for reopening.

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