TaxTMI 
TaxTMI 
2015 (6) TMI 417
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....re the CIT(A) and CIT(A) adjudicated the issue against assessee. The facts relating to this issue is already available in the orders of the lower authorities and no new facts need to be investigated/considered. According to Ld. Counsel, assessee is entitled to raise this issue under rule 27 of the Appellate Tribunal Rules, 1963 (hereinafter referred to as the 'Rules'). He referred to relevant Rule 27, which reads as under: "27. The respondent, though he may not have appealed, may support the order appealed against on any of the grounds decided against him." On the other hand, the Ld. Sr. DR has not objected to challenge the issue of reassessment by invoking rule 27 of the Rules. 3. We find from the orders of AO as well as CIT(A) that validity of reassessment proceedings u/s. 147 read with section 148 of the Act was challenged and CIT(A) has adjudicated the issue against the assessee. In term of the above, we admit this issue raised by assessee under Rule 27 of the Rules and adjudicate the same. The assessee has raised following ground in its application under Rule 27 : "That on the facts and under the circumstances and in law proceedings u/s. 147 of the I. T. Act, 1961 ....
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....d that in respect to reasons recorded for excess sale consideration of Rs. 26,84,942/-, of one Shri Manish Jhunjhunwala vide agreement dated 02.06.2006, which formed basis for issuance of notice u/s. 148 of the Act has not been included in the total income as assessed by the AO. In view of the above facts, now the issue arises before us for consideration is as under: "Whether it is open for the AO to assessee or reassess independently any other income which does not form subject matter of reassessment notice u/s. 147 read with section 148 of the Act, wherein the AO does not assess or reassess the income, which he has reasons to believe had escaped assessment, which formed the basis of notice u/s. 148 of the Act." 5. In the light of the above question and facts and circumstances of the case, we find that this issue now stands covered by the decision of Hon'ble Bombay High Court in the case of CIT Vs. Jet Airways (I) Ltd. (2011) 331 ITR 236 (Bom) wherein Hon'ble Bombay High Court has considered the issue in great detail and after discussing the meaning and expression of 'also' observed as under: "The Shorter Oxford Dictionary defines the expression "also" to mean further, in....
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....stions. When it effected the amendment by bringing in Explanation 3 to section 147, Parliament stepped in to correct what it regarded as an interpretational error in the view which was taken by certain courts that the Assessing Officer has to restrict the assessment or reassessment proceedings only to the issues in respect of which reasons were recorded for reopening the assessment. The corrective exercise embarked upon by Parliament in the form of Explanation 3 consequently provides that the Assessing Officer may assess or reassess the income in respect of any issue which comes to his notice subsequently in the course of the proceedings though the reasons for such issue were not included in the notice under section 148(2). The decisions of the Kerala High Court in Travancore Cements Ltd. [2008) 305 ITR 170 and of the Punjab and Haryana High Court in Vipan Khanna [2002] 255 ITR 220 would, therefore, no longer hold the field. However, in so far as the second line of authority is concerned, which is reflected in the judgment of the Rajasthan High Court in Shri Ram Singh [2008) 306 ITR 343, Explanation 3 as inserted by Parliament would not take away the basis of that decision. The vie....
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....er section 148 would be necessary, the legality of which would be tested in the event of a challenge by the assessee. We have approached the issue of interpretation that has arisen for decision in these appeals, both as a matter of first principle, based on the language used in section 147 and on the basis of the precedent on the subject. We agree with the submission which has been urged on behalf of the assessee that section 147 as it stands postulates that upon the formation of a reason to believe that income chargeable to tax has escaped assessment for any assessment year, the Assessing Officer may assess or reassess such income" and also" any other income chargeable to tax which comes to his notice subsequently during the proceedings as having escaped assessment. The words "and also" are used in a cumulative and conjunctive sense. To read these words as being in the alternative would be to rewrite the language used by Parliament. Our view has been supported by the background which led to the insertion to Explanation 3 to section 147. Parliament must be regarded as being aware of the interpretation that was placed on the words "and also" by the Rajasthan High Court in Shri Ra....