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Commissioner Of Income Tax-5 vs Jet Airways (I) Ltd. on 12 January, 2015

4. On perusal of the facts in the case of the present assessee and the facts and the decision in the case of ATS Infrastructure Ltd. vs ACIT(supra) and CIT vs Jet Airways (I) Ltd.(supra), it emerges that there is a very thin line of difference but a very vital and critical difference, wherein a case the AO accepts the explanation of the assessee on the issue on which he had reopened the assessment and does not make an addition on the said issue but makes addition of other items and a situation where the AO does not accept the explanation of the assessee on the issue on which the assessment was reopened and makes addition of the same [which was however subsequently deleted in appellate proceedings, which in the present case, the addition of Rs.9,60,000/-, the basis of reopening was deleted by the ld. CIT(A)] and also make additions in respect of other items, which comes to his notice subsequently during the course of reassessment proceedings. This difference is very vital in deciding the present case.
Supreme Court - Daily Orders Cites 1 - Cited by 257 - Full Document

Ranbaxy Laboratories Ltd. vs Addl. Commissioner Of Income Tax, Range ... on 22 January, 2008

(emphasis supplied by me) 4.1. As discussed above, in the case of the present assessee the AO disallowed the claim of the assessee of LTCG of Rs.9,60,000/- claimed as exempt u/s 10(38) of the Act on the basis of which the assessment was reopened and was added u/s 68 of the Act and had also made other additions u/s 68 of the Act in respect of unexplained money andcheque deposit amounting to Rs.15,48,000/-and u/s 69 of the Act in respect of unexplained 27 ITA NO.2650/DEL/2024 (A.Y.2012-13) purchase of property amounting to Rs.20,62,375/-. Therefore, relying upon the decision of the Hon'ble Delhi High Court in the case of Ranbaxy Laboratories Ltd. vs CIT(supra), it is held that the AO was justified in making additions in respect of the other items being unexplained which he came across during the reassessment proceedings and for this no separate notice u/s 148 of the Act was required to reassess the said other income being unexplained because he had made the addition in respect of the item, on which, he had reopened the assessment. In my humble opinion, the observation of the Hon'ble Court in para no.21 of this order stating that the Tribunal was right in holding that the Assessing Officer had the jurisdiction to reassess issues other than the issues in respect of which proceedings are initiated but he was not so justified when the reasons for the initiation of those proceedings ceased to survive was in the context, wherein, the AO had accepted the explanation of the assessee in respect of the issue on which the assessment was reopened and where no addition was made by the AO in respect of the said issue and not in a situation where the AO had made addition in respect of the issue on which the assessment was reopened but was subsequently deleted in appellate proceedings. Even, when the addition in respect of the issue on which the assessment was reopened but was subsequently deleted in appellate proceedings will not obliterate the validity of the reasons recorded by the AO for the reopening of the assessment and the valid assumption of jurisdiction by the AO for reassessment proceedings u/s 147/148 of the Act. The assumption of jurisdiction by the AO for reassessment proceedings u/s 147/148 of the Act 28 ITA NO.2650/DEL/2024 (A.Y.2012-13) is on the basis of validity of the reasons recorded by the AO on a particular issue and is not decided by the subsequent deletion of the said issue in appellate proceedings. So, once, the assumption of jurisdiction, on the reasons recorded by the AO are valid, then the consequential reassessment proceedings are also valid and the merits of the addition in respect of items other than on which the assessment was reopened has to be decided on merits notwithstanding the fact that the issue on which the assessment was reopened was subsequently deleted in the appellate proceeding.
Income Tax Appellate Tribunal - Delhi Cites 41 - Cited by 199 - Full Document

M/S. Ats Infrastructure Limited, New ... vs Acit, Meerut on 31 August, 2018

4. On perusal of the facts in the case of the present assessee and the facts and the decision in the case of ATS Infrastructure Ltd. vs ACIT(supra) and CIT vs Jet Airways (I) Ltd.(supra), it emerges that there is a very thin line of difference but a very vital and critical difference, wherein a case the AO accepts the explanation of the assessee on the issue on which he had reopened the assessment and does not make an addition on the said issue but makes addition of other items and a situation where the AO does not accept the explanation of the assessee on the issue on which the assessment was reopened and makes addition of the same [which was however subsequently deleted in appellate proceedings, which in the present case, the addition of Rs.9,60,000/-, the basis of reopening was deleted by the ld. CIT(A)] and also make additions in respect of other items, which comes to his notice subsequently during the course of reassessment proceedings. This difference is very vital in deciding the present case.
Income Tax Appellate Tribunal - Delhi Cites 22 - Cited by 0 - Full Document
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