Reassessment addition unsustainable when the final addition departs from the recorded reopening reason and targets a different issue.

A reassessment addition cannot be sustained when the reopening was initiated on one recorded reason but the final addition was made on a different issue. Here, reassessment was opened on the basis of alleged acquisition of capital assets or purchase of immovable property, yet the assessment ultimately added alleged capital gains from a sale transaction. Because no addition was made on the recorded reopening ground, the impugned addition was held unsustainable and was deleted, with the assessee succeeding on the reassessment challenge.

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Issues: Whether the reassessment addition could be sustained when the reassessment was initiated on one recorded reason, but no addition was made on that very issue and the assessment resulted in an addition on a different matter.

Analysis: The reassessment had been set in motion under the reopening provisions on the basis of alleged acquisition of capital assets or purchase of immovable property, but the reassessment ultimately made an addition relating to sale transaction and alleged capital gains. In such circumstances, the addition was held to be unsustainable because the basis for reopening was not the basis on which the impugned addition was made.

Conclusion: The addition was deleted and the assessee succeeded on the reassessment challenge.

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