TaxTMI 
TaxTMI 
2012 (7) TMI 39
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....jurisdiction over reassessment proceedings once the income alleged to have escaped assessment recorded in the reasons was not found correct and no addition was made on that account in the assessment order. 3. The appellant craves leave to add, to alter or modify any ground(s) of appeal raised above at the time of the hearing. " 2. Facts, in brief, as per relevant orders are that return declaring income of Rs.6,48,065/- filed on 30.10.2004 by the assessee, was processed u/s 143(1) of the Income-tax Act, 1961 (hereinafter referred to as the Act). Subsequently, the Assessing Officer[AO in short] noticed that income of 1,31,75,000/- had escaped assessment , investment of the said amount having not been reflected in the return. Later, the ....
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.... the file of CIT(A) to be decided afresh." 3. In terms of aforesaid directions of the ITAT, the assessee filed detailed written submissions before the ld. CIT(A) as reproduced in para 3 of the impugned order wherein the assessee relied ,inter alia, upon the decision of Hon'ble Bombay High Court in CIT Vs. Jet Airways (I) Limited in I.T.A. No.1714 of 2009, upholding the view of ITAT holding that the words "and also" are used in cumulative and conjunctive sense. Section 147 has this effect that the AO has to assess or reassess the income which escaped assessment and which were the basis of formation of belief and if he does so, he could also assess or reassess any other income which has escaped assessment and which comes to his notice duri....
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....puted escaped income. Section 147 mandates recording of reasons to believe by the Assessing Officer that the income chargeable to tax has escaped assessment. All these conditions assessment order required to be fulfilled to assess or reassess the escaped income chargeable to tax. As per Explanation (3) if during the course of these proceedings the Assessing Officer comes to conclusion that some items have escaped assessment, then notwithstanding that those items were not included in the reasons to believe as recorded for initiation of the proceedings and the notice, he would be competent to make assessment of those items. However, the legislature could not be presumed to have intended to give blanket powers to the Assessing Officer that on ....
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.... of club fees, gifts and presents, etc., then in view of our discussion as above, he would have been justified as per Explanation 3 to reduce the claim of deduction u/s 80HH and 80-I as well. 21. In view of our above discussions, the Tribunal was right in holding that the Assessing Officer had the jurisdiction to reassess issues other than the issues in respect of which proceedings are initiated but he was not so justified when the reasons for the initiation of those proceedings ceased to survive. Consequently, we answer the first part of question in affirmative in favour of revenue and the second part of the question against the revenue. 22. The present appeal is accordingly allowed." 3.2 After having considered the facts of the c....
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....assessment year 2004-05." 3.3 However, during the reassessment proceedings, the Assessing Officer made additions of Rs.11,06,392/- on account of long term capital gains and Rs.3,00,000/- on account of low withdrawals for household expenses. Thus, in view of the aforementioned judgment of the Jurisdictional High Court relied upon by the appellant, clear position of law and facts of the case, I am of the considered that the Assessing Officer had no jurisdiction to reassess issues other than /the issue in respect of which reassessment proceedings were initiated when no addition was made in respect of the amounts of income escaping assessment for which the assessment was reopened. Therefore, it is held that the assumption of jurisdiction u/s....
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.... reassess any other income which has escaped assessment and which comes to his notice during the course of the proceedings. However, if after issuing a notice under section 148, he accepted the contention of the assessee and holds that the income which he has initially formed a reason to believe had escaped assessment, has as a matter of fact not escaped assessment, it is not open to him independently to assess some other income. If he intends to do so, a fresh notice under section 148 would be necessary, the legality of which would be tested in the event of a challenge by the assessee." 5.1 Following the view in Jet Airways India Ltd.(supra) and Ranbaxy Laboratories Ltd.(supra), Hon'ble CHATTISGARH High Court in their decision dated 8.1....