Tribunal directs reevaluation by CIT(A) on jurisdictional issue under section 147

The Tribunal set aside the issue to the Ld. CIT(A) to examine whether the assumption of jurisdiction u/s 147 was justified, given that no addition was made for the income escaping assessment for which the assessment was reopened. The Ld. CIT(A) was directed to pass a speaking order on this issue. Consequently, the addition made on merit was also set aside for fresh consideration by the CIT(A). The appeal by the assessee was allowed for statistical purposes.

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Issues involved: Jurisdiction u/s 147 of the Income Tax Act for Assessment Year 2004-05.

Summary:
The appeal by the assessee challenged the assessment made in response to a notice u/s 148 read with Section 147, contending that no addition was made based on which the assessment was reopened. The assessee filed amended grounds of appeal, arguing that the Assessing Officer assessed income not subject to the notice. The AR for the assessee requested admission of this ground before the Ld. CIT(A), which was conceded. After hearing both parties, the amended grounds were admitted. The Tribunal set aside the issue to the Ld. CIT(A) to examine whether the assumption of jurisdiction u/s 147 was justified, given that no addition was made for the income escaping assessment for which the assessment was reopened. The Ld. CIT(A) was directed to pass a speaking order on this issue. Consequently, the addition made on merit was also set aside for fresh consideration by the CIT(A). The appeal by the assessee was allowed for statistical purposes.

The order was pronounced in the open court on 07th April 2011.

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