TaxTMI 
TaxTMI 
2014 (2) TMI 310
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....on 147 by holding that the same suffers from lack of jurisdiction on the part of AO. 2. The grounds of appeal for the sake of convenience are reproduced as under: "1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in setting aside the assessment order u/s. 143(3) r.w.s 147 by holding that the same suffers from lack of jurisdiction without appreciating the fact that the notice u/s 148 was issued and duly served on the assessee within the limitation date on 30.03.2010." 2. On the facts and in the circumstances of the case and in law, the CIT(A) erred in setting aside the assessment order without appreciating the fact that the additions made by the AO were based on the materials found at the time of surve....
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....essment to that extent. So after recording above reason, he reopened the assessment under section 147 of the Act by way of issuing notice under section 148 of the Act. The assessee objected to the validity of the reassessment proceedings. However, he participated in the reassessment proceedings. In the reassessment proceedings, the AO observed that the assessee has been engaged in the business of bar and restaurant. A survey action under section 133A of the Act had been carried out on 23.01.04 at the business premises of the assessee. During the course of survey proceedings certain incriminating documents indicating purchase bills, counter sale slips etc. pertaining to 31.12.03 relevant to financial year 2003-04 had been found and impounded....
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....income-tax has escaped assessment. He may start reassessment proceedings either because some fresh facts come to light which were not previously disclosed or some information with regard to the facts previously disclosed comes into his possession which tends to expose the untruthfulness of those facts. However, in the instant case he found that AO had not come to a conclusion that the information provided by the assessee in the original assessment was not correct. He further observed that for reopening of assessment under section 147, the AO must have some reason to believe that certain income of the assessee has escaped assessment. The expression "reason to believe" implied in the section, presupposes some objectivity of the AO and not mer....
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....rder of the AO. The Revenue is thus in appeal before us. 5. We have heard the ld. representatives of both the parties and have also gone through the records. It may be observed from the facts of the case that the AO had reopened the assessment only on the ground that the scrutiny assessment under section 143(3) of the Act was set aside by the higher authorities. In our view, that itself cannot be a ground for reopening of the assessment under section 147 of the Act. Such an action cannot be allowed under the law as it may amount to defeating the one statutory provision in the garb of acting under the other provision of the statute. Once the assessment under section 143(3) has been annulled by the higher authorities, reopening under sectio....