2015 (10) TMI 1468

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....assets figure has been shown at Rs. 331571/-, whereas during the immediately preceding previous year i.e. A. Y. 2010-11, the fixed assets were shown at Rs. 14,39,283/-. This fact, shows that 'A' has sold fixed assets to the tune of Rs. 111,07,712/- during the relevant year. No Capital gains has been shown in the Return of Income. Therefore, I have reason to believe that Capital gains on sale of fixed assets has escaped assessment or the 'A' has concealed the particulars of his income. Proceedings under section 147 initiated and notice under section 148 issued.' There is no addition on this count in assessment order hence present assessment is an invalid assessment in the eye of law. (2) The Ld. C. I. T. (Appeal) er....

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....o the computation of income in the assessment order. Our attention was also invited to various judicial pronouncements in which it has been held that where the issue on which assessment was reopened was itself dropped in the assessment order, the Assessing Officer exceeded his jurisdiction in reopening the assessment on the said issue. Reliance was placed upon the following orders/judgments:- 1. SC Enviro Agro India Ltd. vs. DCIT, 143 ITD 195. 2. CIT vs. Jet Airways (I) Ltd., 239 CTR 183 (Bombay). 3. CIT vs. Mohd. Juned Dadani, 85 DTR 12 (Guj.). 4. Ranbaxy Laboratories Ltd. vs. CIT, 336 ITR 136 (Delhi). 5. CIT vs. Banwari Lal Banshidhar, 229 ITR 229 (Alld.). 6. R.V. Constructions, Kanpur vs. Income Tax Officer, Kanpur in I....

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....so any other income which escaped assessment which came to his notice subsequently in the course of the assessment proceedings. Their Lordships have further explained that explanation (3) of Section 147 of the Act, however, by no stretch of imagination, can be construed as to provide that if the reason on which the assessment is reopened fails, the Assessing Officer still can proceed to assess some other income which according to him had escaped assessment and which came to his light during the course of the assessment. Their Lordships have further clarified that the explanation was meant to be clarificatory in nature and to put the issue beyond any legal controversy. Explanation 3 to Section 147 of the Act thus does not in any manner, even....