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Assessments Cancelled: Tribunal Rules Assessing Officer Cannot Independently Add under Section 68 The Tribunal allowed the assessee's appeals challenging the validity of assessments made by the Assessing Officer for A.Y. 2006-07 and A.Y. 2009-10 under ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
The Tribunal allowed the assessee's appeals challenging the validity of assessments made by the Assessing Officer for A.Y. 2006-07 and A.Y. 2009-10 under section 143(3) r.w.s. 147. The Assessing Officer had reopened the assessments and made additions under section 68 of the Income Tax Act, 1961. The ld. CIT(A) upheld the assessments but granted partial relief on the additions. The Tribunal held that since no additions were made based on the reasons for reopening, the Assessing Officer could not independently make additions under section 68. Consequently, the assessments for both years were cancelled, and the appeals were allowed.
Issues: Validity of assessments made by Assessing Officer u/s 143(3) r.w.s. 147 for A.Y. 2006-07 and A.Y. 2009-10.
Analysis: The appeals were filed by the assessee against two separate orders passed by the ld. CIT(A)-1, Kolhapur for A.Y. 2006-07 and A.Y. 2009-10. The Assessing Officer had reopened the assessments and made additions under section 68 of the Income Tax Act, 1961. The ld. CIT(A) upheld the validity of the assessments but allowed partial relief on the additions made under section 68. The assessee challenged the validity of the assessments on the grounds that no additions were made based on the reasons for reopening. An additional ground was raised during the appellate proceedings to challenge the validity of the assessments.
The ld. Counsel for the assessee argued that since no additions were made based on the reasons for reopening, it was not lawful for the Assessing Officer to independently make additions under section 68. The Counsel relied on a decision by the Hon’ble Bombay High Court and stated that assessments made without satisfying the requisite condition are liable to be cancelled. The Tribunal found merit in the contention and allowed the additional ground raised by the assessee, cancelling the assessments made by the Assessing Officer for both years under consideration.
The Tribunal, having decided to cancel the assessments, deemed the other grounds raised by the assessee as infructuous. Therefore, those grounds were not adjudicated upon. Consequently, both appeals of the assessee were allowed, and the order was pronounced on September 21, 2020.
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