TaxTMI 
TaxTMI 
2014 (9) TMI 1112
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....red to as 'the Act' in short) at an income of Rs. 7,62,140/-. Later on, the Assessing Officer initiated the proceedings u/s. 147 of the Act by issuing notice u/s. 148 of the Act. In response, the assessee submitted that the return filed u/s. 139(1) of the Act may be treated as having filed in response to the notice u/s. 148 of the Act. The assessee also requested for supply of reasons recorded for issuance of notice u/s. 148 of the Act. The Assessing Officer supplied the reasons recorded for reopening the assessment. The assessee challenged the reopening and submitted before the Assessing Officer as under:- "That the proceeding initiated u/s 147 is bad in law and the validity of the notice u/s 148 and ions recorded by the AO prior to the issuance of the notice are challenged on the following grounds. a. That during the course of regular assessment proceedings complete detail of the gift made by Smt. Sudha Sachdeva to the assessee for Rs. 600000/- was filed vide letter dated 22.09.2010. b. That the copy of gift deed was also filed during the assessment proceedings. c. That the Ld. AO while framing the assessment order duly examined the issue of gift made to her by Smt. Sudha....
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....on the jurisdiction cannot be invoked u/s 148 to reconsider the issue which was examined during the course of original assessment proceeding. g. That reassessment jurisdiction is meant for covering escaped income but where an issue was subject matter of consideration on the part of the Assessing Officer in the original assessment; reassessment is not permissible even within the four year time limit, because even in such a case, reassessment is based upon a change of opinion, which is not permissible. As otherwise, it would tantamount to review of assessment, which is not permissible by way of reassessment. The legal position affirmed in the following judicial decisions including decision of jurisdiction Tribunal and the decision of Hon'ble Supreme Court: i. CITv/s Krishna Textile 315 ITR 271 (All) ii. CIT vs. Kelvinator Of India Ltd. 256 ITR 1 (Del) stood confirmed by the supreme court in 320 ITR 561 (SC) iii Raj Kumar Agarwal Vs. LTO. Ward -2, Makrana. Jodhpur ITAT in ITA No. 884/JU/2007 dated 17.04.2009 following the decision in the case of CIT vs. Kelvinator Of India Ltd. 256 ITR 1 (Del) (Copy of decision of Hon'ble ITAT is enclosed herewith). h That further it....
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....e income, hence, it was not income of the assessee. Therefore, the reassessment completed was liable to be quashed. Reliance was placed on the decision of the ITAT Jodhpur Bench in the case of Raj Kumar Agarwal, Makrana Vs. ITO, Ward-2, Makrana in I.T.A.No. 884/JU/2007. 4. The learned CIT(A), after considering the submissions of the assessee was of the view that the plea taken by the assessee in respect of the audit objection was not acceptable and that the jurisdiction to initiate the proceedings u/s. 147 of the Act for reassessment was correctly and rightly exercised by the Assessing Officer. Reliance was placed on the judgment of Hon'ble Gujarat High Court in the case of Vasant Chunnilal Patel Vs. ACIT reported at 236 ITR 832. The Ld. CIT(A) also confirmed the addition made by the Assessing Officer. Now the assessee is in appeal. 5 Learned counsel for the assessee reiterated the submissions made before the authorities below and also drew our attention towards page 19 of the assessee's paper book which is the copy of the audit objection and submitted that the action was taken by the Assessing Officer only on the basis of audit objection. Therefore, the reopening was not val....
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.... law mentioned in the audit note and whether inconsequence of the law which has now come to his notice he can reasonably believe that income has escaped assessment. The basis of his belief must be the law of which he has now become aware. The opinion rendered by the audit party in regard to the law cannot, for the purpose of such belief, add to or colour the significance of such law. The true evaluation of the law in its bearing on the assessment must be made directly and solely by the ITO. It has further been held as under:- "The opinion of the audit party on a point of law could not be regarded as 'information' enabling the ITO to initiate reassessment proceedings under s. 147(b). The ITO had, when he made the original assessment, considered the provisions of ss. 9 and 10 of the Indian I.T. Act, 1922. Any different view taken by him afterwards on the application of those provisions of would amount to a change of opinion on material already considered by him." 9 Similarly, the Hon'ble Delhi High Court in the case of CIT Vs. Eicher Ltd. reported in (2007) 294 ITR 310 has held as under:- "That the assessee had placed all the material before the Assessing Officer and where ....