2015 (5) TMI 901

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....beyond the jurisdiction of the Learned Assessing Officer as there was nothing from the assessment records that income had escaped assessment and that the reopening was made on the basis of information received from the Directorate of Investigation and hence the reopening u/s 147/148 is bad in law. 2. That the Learned Commissioner of Income Tax (Appeals), Faridabad has erred in denying the legitimate deduction claimed by the appellant u/s 54/54F in respect on new residential property bought against sale of commercial property as alleged by the Learned Assessing Officer. 3. That it is accordingly prayed that the exemptions denied by the Learned Commissioner of Income Tax (Appeals) may kindly be deleted. 4. That the appellant craves l....

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....f Rs. 56,74,539/- from house property, Rs. 2,93,704/- as income from other sources and Rs. 10,67,16,676/- as income from long term capital gain. The assessee also claimed deduction of Rs. 4,83,09,106/- u/s 54 of the Income Tax Act, 1961 (hereinafter referred to as the Act). Later on, the AO noticed that the capital assets sold was an industrial building and not a residential house, as such deduction claimed u/s 54 of the Act was not allowable. Thereafter the AO issued notice u/s 148 of the Act on 18.11.2011 after recording the reasons and assessed the income u/s 147 of the Act at Rs. 16,09,94,025/- by making an addition of Rs. 4,83,09,106/-. The AO also did not allow the deduction u/s 54 of the Act. 6. Being aggrieved the assessee carrie....

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.... it is evident that there are significant differences between the case in question and the cases relied upon by the appellant. For instance, in the case of NTPC Ltd. Vs CIT 229 ITR 383 (Supreme Court), their lordships dealt with the power of ITAT in admitting additional grounds of appeal whereas in this case the issue is the circumstances under which the CIT(A) can admit additional grounds. It is worthwhile mentioning here that in Goetze India Ltd. Vs CIT (supra), the Hon'ble Apex Court held that the case of NTPC Ltd. is applicable only to the Hon'ble ITAT. Furthermore, in the case of NTPC Ltd. Vs CIT (supra), relied upon by the appellant, the appellant had given cogent reasons for including the additional grounds of appeal. To be more prec....

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....s not admitted. 2.16 Having rejected the additional grounds submitted by the appellant during the course of appellate proceedings, let us examine various grounds of appeal filed at the time of filing of appeal." 8. The ld. CIT(A) also did not find merit in the arguments of the assessee relating to the reopening u/s 147 of the Act. 9. Now the assessee is in appeal. The ld. Counsel for the assessee reiterated the submissions made before the authorities below and further submitted that the additional grounds raised by the assessee before the ld. CIT(A) were purely legal issues which go to the root of matter and did not require fresh facts to be investigated. Therefore, the ld. CIT(A) was not justified in not admitting the additional g....

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....ued on 17.11.2011, it was well within the time limit laid down for issuing notice u/s 149 of the Income Tax Act. Since this case was not assessed earlier u/s 143(3)/147 and the notice had been issued within a period of 4 years from the end of relevant assessment year, the ACIT Circle-I(1), Gurgaon was competent enough to issue a said notice. Ground Nos. 3 and 4 hereby rejected." 12. From the aforesaid observation, it is clear that the ld. CIT(A) justified the reopening for only on this basis that the notice issued u/s 148 of the Act was within the time limit laid down u/s 149 of the Act and that the AO recorded the reason on the basis of information received from the Directorate of Investigation, Gurgaon, however, he neither discussed th....