https://www.taxtmi.com/caselaws?id=444875 ITAT Mumbai allowed the assessee's appeal against addition on outstanding sundry creditors. The assessment was reopened based on information that the assessee failed to repay loans and ceased liability, resulting in income escaping assessment of Rs. 86 crores. However, the AO made additions only on sundry creditors without addressing the specific grounds for reopening. Following HC precedent in Jet Airways case, the AO must assess income for which reopening was made. Since the AO failed to make additions on the actual reopening grounds while making additions on other matters, the assessment was held invalid. en-us Fri, 22 Sep 2023 00:00:00 +0530 Tue, 24 Oct 2023 15:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=444875 ITAT Mumbai allowed the assessee's appeal against addition on outstanding sundry creditors. The assessment was reopened based on information that the assessee failed to repay loans and ceased liability, resulting in income escaping assessment of Rs. 86 crores. However, the AO made additions only on sundry creditors without addressing the specific grounds for reopening. Following HC precedent in Jet Airways case, the AO must assess income for which reopening was made. Since the AO failed to make additions on the actual reopening grounds while making additions on other matters, the assessment was held invalid. Case-Laws Income Tax Fri, 22 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=444875