DEVI MANUBHAI SHAH,MUMBAI vs. ITO - CIRCLE 32(1) , MUMBAI

ITA 7005/MUM/2025Status: DisposedITAT Mumbai09 January 2026AY 2012-13Bench: SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the Assessing Officer cannot make an addition on an issue not forming the basis of the reassessment notice, if the original reasons for reopening are not sustained. The addition made by disallowing Section 54F exemption was quashed.

What were the facts?

The Assessing Officer initiated reassessment proceedings based on specific reasons but made an addition by disallowing exemption under Section 54F, which was not part of the original reasons. The assessee argued that this addition was beyond the scope of the reassessment notice.

What were the issues?

Whether an Assessing Officer can make an addition on an issue not forming the basis of the reasons recorded for reopening assessment, when the original reasons are not sustained. The validity of reassessment proceedings when the addition made is beyond the scope of the reasons for reopening.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 54F,Section 143(3)

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Cases cited in this judgment(4)Show list

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Income Tax Appellate Tribunal, “D” BENCH, MUMBAI

[ Per Rahul Chaudhary, Judicial Member:

1.

The present appeal preferred by the Assessee is directed against the order, dated 05/08/2025, passed by the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘the CIT(A)’] whereby the Learned CIT(A) had dismissed the appeal against the Assessment Order, dated 11/12/2019, passed under Section 143(3) read with Section 147 of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’] for the Assessment Year 2012-2013. 2. When the appeal was taken up for hearing the Learned Authorised Representa

The order continues below.

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