https://www.taxtmi.com/caselaws?id=783495 Where an assessment is reopened under s.147, the AO cannot, after accepting the assessee's explanation on the recorded "reasons to believe" and making no addition on that issue, sustain an addition on a different issue not forming part of the recorded reasons; Explanation 3 to s.147 does not cure this defect when no addition is made on the recorded reasons. Applying this principle, the AO made no addition regarding the cash deposits that formed the basis of reopening but made an unrelated disallowance under s.40A(3) without recording reasons. The ITAT held the s.40A(3) addition unsustainable and directed its deletion, allowing the assessee's ground. en-us Fri, 12 Dec 2025 00:00:00 +0530 Wed, 17 Dec 2025 16:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=783495 Where an assessment is reopened under s.147, the AO cannot, after accepting the assessee's explanation on the recorded "reasons to believe" and making no addition on that issue, sustain an addition on a different issue not forming part of the recorded reasons; Explanation 3 to s.147 does not cure this defect when no addition is made on the recorded reasons. Applying this principle, the AO made no addition regarding the cash deposits that formed the basis of reopening but made an unrelated disallowance under s.40A(3) without recording reasons. The ITAT held the s.40A(3) addition unsustainable and directed its deletion, allowing the assessee's ground. Case-Laws Income Tax Fri, 12 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=783495