2017 (5) TMI 410

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....s and profession and other sources.He filed his return of income on 21/07/2001, declaring income of Rs. 27.94 lakhs. Initially, the return was processed under section 143 (1) on 11/12/2002. The Assessing Officer(AO)issued a notice under section 148 of the Act, on 17/07/2003, as he was of the opinion that the assessee had not disclosed his true and correct income and that income had escaped taxation. The AOcompleted the assessment, u/s. 143 (3) read with section 147 of the Act, on 31/10/2003, determining the income of the assessee at Rs. 62.27 lakhs. 2. The assessee, vide its application dated 08/05/2015, has filed additional ground of appeal. It his application, he has stated that issue raised by it is of legal nature, that the grounds r....

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....3-04, dated 16/12/2015). The Departmental Representative(DR) supported the order of the AO and the First Appellate Authority(FAA). 4. We have heard the rival submissions and perused the material before us. In our opinion the jurisdiction issue has to be decided first because it goes roots of the matter. We're reproducing the reasons recorded by the AO and same reads as under: "17/7/2003. The assessee has filed the return of income claiming refund of Rs. 9, 66, 815/-on 31.7. 2001. The same has been processed under section 143 (1) on 11/12/2002. The case has been received by this charge on 23/5/2003. On observation it is seen that the assessee had claimed some deduction to reduce his tax liability. While his sale is amounting to Rs. ....

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....ngs stand vitiated. We would like to refer to the case of Godrej Industries Ltd.(377 ITR1)of the Hon'ble Bombay High Court that deals with re-opening of cases as per the provisions of section 147 of the Act. It reads as under: "An assessment can be reopened under section 147 and section 148 of the Income-tax Act, 1961, only on the jurisdictional requirement for reopening of an assessment being strictly satisfied. This is for the reason that a reopening of an assessment would disturb a settled position by reopening a completed proceeding. Normally, the jurisdictional requirements to be satisfied for issuing of a reopening notice are (a) the Assessing Officer must record his reasons for issuing a reopening notice before issuing the notice ....