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August 2026

What the Assessing Officer could not have done directly while exercising jurisdiction under sections 147/148, the CIT(A) cannot be permitted to do indirectly while exercising powers under section 251. What cannot be done directly cannot be permitted to be achieved indirectly. Where no addition survives on the issue for which the assessment was reopened, the Revenue cannot independently assess income on issues unconnected with the reasons recorded for reopening. Power of enhancement is only ancillary to appellate jurisdiction and cannot become an independent source of jurisdiction to assess income which the Assessing Officer himself could not have assessed in the reassessment proceedings If Revenue’s argument that the CIT(A) can at any stage introduce a completely new source of income unrelated to the issue for which reassessment proceedings were initiated, is accepted, then it would virtually render the statutory limitations prescribed under sections 147 to 149 otiose.

By Jagdish T Punjabi, Chartered Accountant Devendra Jain & Aditya Bhatt, Advocates
Reading Time 6 mins

37. TS-9340-ITAT-2026(Chandigarh)

Ritu Chopra v. ITO

A.Y.: 2013-14 Date of Order : 22.6.2026

Sections: 147, 251

What the Assessing Officer could not have done directly while exercising jurisdiction under sections 147/148, the CIT(A) cannot be permitted to do indirectly while exercising powers under section 251. What cannot be done directly cannot be permitted to be achieved indirectly.

Where no addition survives on the issue for which the assessment was reopened, the Revenue cannot independently assess income on issues unconnected with the reasons recorded for reopening. Power of enhancement is only ancillary to appellate jurisdiction and cannot become an independent source of jurisdiction to assess income which the Assessing Officer himself could not have assessed in the reassessment proceedings

If Revenue’s argument that the CIT(A) can at any stage introduce a completely new source of income unrelated to the issue for which reassessment proceedings were initiated, is accepted, then it would virtually render the statutory limitations prescribed under sections 147 to 149 otiose.

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Denial of claim under section 54F cannot be sustained where the case of the assessee was selected for limited scrutiny with the notice under section 143(2) stating verification of large cash deposits in savings bank account to be the reason therefor. Once a revised return is filed, the original return stands replaced. Consequently, the assessment made on the basis of original return by ignoring the revised return which reduced the total income needs to be quashed.

Addition for payment of on-money cannot be sustained merely on the basis of a statement which per statement per se cannot be considered as evidence against third party unless it is tested by cross examination.