2009 (11) TMI 406

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....dgment of the court was delivered by C. N. Ramachandran Nair J.- The question raised in the appeal filed by the Revenue is whether the Tribunal was justified in confirming the order of the Commissioner of Income-tax (Appeals) cancelling the reassessment completed under section 147 of the Income-tax Act, 1961 in the case of the respondent for the year 1996-97. We have heard senior counsel appear....

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....cessed under 143(1)(a) accepting the return of income and disallowing credit for TDS as the relevant income was not offered for assessment. According to the certificate of TDS filed along with the return of income, the assessee was paid rent amounting to Rs. 2,46,180 from State Bank of Mysore, Calicut Branch. This amount has not been included in the total income of the assessee. Balance-sheet show....

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....at Rs. 18,09,870. The appeal filed before the Commissioner of Income-tax (Appeals) was allowed vacating the revised assessment for the reason that the grounds stated for reopening were non-existent because in the first place, no income from house property was assessed even though the claim of TDS without disclosing income under this head was the ground for reopening.  Besides this, the Com....

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....essing Officer that income chargeable to tax has escaped assessment. This does not necessarily follow that the reason for reopening should by itself lead to assessment of any income. In other words, in the course of reassessment all escaped income could be brought to tax and the Assessing Officer is not bound to confine to the grounds on which reopening is made. In this case the assessee claimed c....