TaxTMI 
TaxTMI 
2020 (10) TMI 1143
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....res: - "1. The learned CIT(A) erred in confirming re-assessment made u/s 147, despite the fact e AO did not make an addition/ disallowance on the grounds that the assessment was reopened but the disallowance was made on issue not at all connected with the issue on which reasons were recorded. 2. A) Learned CIT(A) erred in confirming disallowance U/S 14A r.w. Rule 8D (iii) Of Rs. 65,027/- B) The learned CIT(A) failed to consider that the dividend received & subject to tax was a sum of Rs. 11,225/- & not treated as tax exempt. C) The learned CIT(A) erred in confirming disallowance under Rule 8D (iii) On investments and stock in trade & if only investment was considered, then the disallowance would not exceed a sum of Rs. 1,125/ ....
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....of assessment in both these Assessment Years there is not even whisper about the disallowance in respect of section 14A of the Act and escapement of income on that reason. 6. We also found that similar issue had cropped up in assessee's own case for the A.Y. 2012-13 in ITA.No. 4561/Mum/2018 dated 29.07.2019 wherein on identical facts Tribunal had affirmed the order of the Ld.CIT(A) in deleting the disallowance u/s. 14A on the ground that assessment was reopened for the addition/disallowance made in the reassessment were not the reasons for reopening the assessment and the disallowance was made which was not mentioned in the reasons recorded for reopening of assessment. The Tribunal observed as under: - "4. Brief facts of the case are tha....
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....ve completed the re-assessment after making any further addition/ disallowance on a fresh issue. However, in the instant case, the AO has proceeded to make a disallowance u/s. 14A in the re-assessment proceedings, though, no addition was made by him on the ground for which the assessment was re-opened. Therefore, in view of the decision of the jurisdictional High Court in the case of Jet Airways (supra), the action of the Assessing Officer of making the disallowance u/s. 14A is found to be not as per law. 6. Despite holding so learned CIT(A) proceeded to partly upholding the disallowance u/s. 14A of the Act. 7. Against this order, the assessee is in appeal before the ITAT. I have heard both the counsel and perused the records. 8. Lear....
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....learned CIT(A) and delete the disallowance." 7. On a perusal of the reasons in the appeals under consideration, we find that the reasons as recorded by Assessing Officer for reopening of assessment for the A.Y. 2012-13 was also identical for both these Assessment Years in which there was no mention about escapement of income on account of disallowance u/s. 14A of the Act. Facts being identical applying the ratio of the decision of the Hon'ble Jurisdictional High Court in the case of Jet Airways Ltd., (supra) we hold that the reopening of assessments for both these assessment is bad in law. Thus, Ground No.1 is allowed. 8. Since, we have allowed Ground No.1 of the grounds of appeal holding that the reopening of assessment is bad in law....