2010 (10) TMI 183

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....er section 147/148 of the Act in the absence of any new ground or reasonable cause, is legally sustainable in the eyes of law ?   (ii) Whether in the facts and circumstances of the present case the action of the authorities below in holding proceedings under section 143(1)(a) of the Act not to be assessment proceeding is legally sustainable in the eyes of law ?   (iii) Whether in the facts and circumstances of the present case the action of the authorities below in initiating reassessment proceedings under section 147/148 of the Act on mere change of opinion, is legally sustainable in the eyes of law ?"   3. The assessee is a Development Officer of the LIC and claimed deduction on incentive bonus and additional conve....

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....in the case of CIT v. H. S. Sandhu reported in [1999] 237 ITR 167 (P&H) and in the case of CIT v. Chaman Lal Chandok [2000] 241 ITR 442 (P&H).   2.11 Upon reading of section 147 of the Act, we find that in view of Explanation 2(c)(i) wherein it has been clearly mentioned that where the income chargeable to tax has been under assessed, it will be deemed to be a case where income chargeable to tax has escaped assessment. In the instant cases, this fact that income chargeable to tax has escaped assessment, came to the knowledge of the Assessing Officer when the jurisdictional High Court of Punjab and Haryana in the cases (supra) held that the incentive bonus is assessable under the head `Salary' and not under the head `Profits and gain....