Addition has No Connection with Escaped Income: ITAT deletes Re-Assessment [Read Order]

The Delhi Bench of Income Tax Appellate Tribunal ( ITAT ) has deleted the reassessment as the addition was not connected with the escaped income.

Vineet Mittal was a resident individual and assessing officer (AO) based on AIR information found that assessee in the year under consideration had deposited cash in a savings bank account held with HDFC Bank. Assessee did not comply with the query raised. Presuming that the assessee had escaped income AO reopened the assessment,assessee submitted that the cash deposits were made out of income earned from private tuition and he also had claimed expenditure in which he failed to produce the supporting evidence for such expences

Satyendra Kumar Chaturvedi on behalf of the assessee submittedthat the disallowance made is legally unsustainable. 

Toufel Tahir on behalf of the revenue, strongly relied upon the observations of the departmental authorities

The Single Bench of  Saktijit Dey (Judicial Member) allowed the appeal observing that , “Assessing Officer reopened the assessment for assessing a particular item of income, whereas, instead of assessing that income he has  added another item of income which was not the subject matter of reopening. However, without assessing that escaped income the Assessing Officer cannot make assessment of other items of income.”

To Read the full text of the Order CLICK HERE

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