Allowing the appeal the Court held that the Commissioner (Appeals) and the Income-tax Appellate Tribunal had mechanically upheld the order of the Assessing Officer without proper appreciation of the true scope and purport of sections 147 and 148 . Deduction allowed from Income from other sources in original assessment and the AO has not brought any new facts on record. Accordingly the reassessment to withdraw deduction is not valid. ( AY.1992-93)
Kumar’s Metallurgical Corporation Ltd. v. JCIT ( 2018) 406 ITR 386 (T&AP) (HC)
S.147: Reassessment — With in four years- Deduction allowed from Income from other sources in original assessment — No new facts on record — Reassessment to withdraw deduction is not valid .[ S. 56, 57(iii), 148]