TaxTMI 
TaxTMI 
2011 (11) TMI 751
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....cold creams. The company filed its return of income for Assessment Year 2003-04 on 30.10.03 declaring total income of Rs. 53,24,680/-. This return was processed u/s.143(1). Subsequently, the reassessment proceedings u/s.147 r.w.s. 148 was initiated on 18.07.06 after recording requisite reasons and reassessment was completed on 26.12.07. The reasons for reopening was that the assessee has claimed wrong deduction of Rs. 22,85,012/- u/s.80 IB of the Act as it does not fall under the definition of 'small scale industry'. But when the reassessment was made, this was not found to be correct reason for reopening and no addition was made in respect of the above said reason. Accordingly, the Ld. Commissioner of Income Tax(A) has held the reassessmen....
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....ioner of Income Tax(A) ought to have appreciated the fact that the ratio of the decision of the Bombay High Court rendered in the case of Commissioner of Income Tax Vs. M/s.Jet Airways I Ltd., relied upon by the learned Commissioner of Income Tax(A) does not expound the law in the right perspective for the reason that the statute has conferred the right to consider any other matter during the course of re assessment proceedings and brought the same to tax; This view is reiterated by the amendment to Finance Act 2009 with retrospective effect from 01.04.1989 which also reaffirms the provisions of Sec.147(1). 2.6. It is further submitted that the views expressed in the decision cited supra that if the issue for which the proceedings ....
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.... such issue comes in respect of any issue which has escaped assessment, when such issue comes to his notice subsequently in the course of the proceedings. Parliament having used the words "assess or reassess such income and also any other income chargeable to tax which has escaped assessment", the words 'and also' cannot be read as being in the alternative. On the contrary, the correct interpretation would be to regard those words as being conjunctive and cumulative. It is of some significance that Parliament has not used the word "or". The Legislature did not rest content by merely using the word 'and'. The words 'and' as well as 'also' have been used together and in conjunction. Evidently, what Parliament intends by use of the words 'and ....
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.... of Hon'ble Rajasthan High Court in the case of C.I.T. vs. Dr.Devendra Gupta [2011] 336 ITR 59 (Raj.) and of Hon'ble Delhi High Court in the case of Ranbaxy Laboratories Ltd. Vs. C.I.T. [2011] 336 ITR 136 Del) inter alia, are akin to the facts in hand. Therefore, the decision of the Ld. Commissioner of Income Tax(A), who has followed the above-named decisions, is in line with the ratio of the above judgments. Therefore, we do not find any infirmity in the conclusion reached by Ld. C.I.T.(A). In that view of the matter, the Revenue cannot succeed in this appeal. The decision of Hon'ble Bombay High Court in the case of Jet Airways (I) Ltd. (supra) also extensively deals with Explanation 3 appended to section 147 of the Income Tax Act, which w....