TaxTMI 
TaxTMI 
2017 (8) TMI 1604
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....f the CIT(Appeals). Therefore, we heard both the appeal and the cross-objection together and disposing of the same by this common order. 2. The assessee raised an issue with regard to reopening of assessment which goes to the root of the matter. Therefore, let's first take the cross-objection filed by the assessee. 3. Shri R. Sivaraman, the Ld.counsel for the assessee, submitted that the assessment was originally completed by an order dated 25.11.2011 after reopening. For the second time, the Assessing Officer reopened the assessment by issuing a notice under Section 148 of the Income-tax Act, 1961 (in short 'the Act') on 31.03.2014, after expiry of four years. According to the Ld. counsel, immediate provocation of Department to r....
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....the Department cannot specify that such markup is necessary. The Assessing Officer has also informed the audit wing that the observation made by the audit wing is not correct and requested the audit wing to drop the audit objection. After replying to the audit wing, the Assessing Officer has reopened the assessment by issuing notice under Section 148 of the Act. 5. Referring to Section 147 of the Act, the Ld.counsel for the assessee submitted that Section 147 clearly says that if the Assessing Officer has reason to believe that income chargeable to tax has escaped assessment for any assessment year, he may, subject to provisions of Sections 148 to 153, assess or re-assess such income and also any of the income chargeable to tax which escap....
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....is case also, according to the Ld. D.R., after audit objection, the Assessing Officer independently applied his mind to issue notice under Section 148 of the Act for reopening the assessment. On a query by the Bench, the Ld. D.R. replied that even though initially the Assessing Officer found that the audit objection is not correct, subsequently he realized the mistake and issued notice under Section 148 of the Act. Therefore, the reply filed by the Assessing Officer cannot be construed that the Assessing Officer has not satisfied himself about the income escaped from assessment. Hence, according to the Ld. D.R., the Assessing Officer has rightly reopened the assessment. 7. We have considered the rival submissions on either side and perused....
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....n to any asset (including financial interest in any entity) located outside India, chargeable to tax, has escaped assessment for any assessment year : Provided further that the Assessing Officer may assess or reassess such income, other than the income involving matters which are the subject-matters of any appeal, reference or revision, which is chargeable to tax and has escaped assessment. Explanation 1.- Production before the Assessing officer of account books or other evidence from which material evidence could with due diligence have been discovered by the Assessing officer will not necessarily amount to disclosure within the meaning of the foregoing proviso. Explanation 2.- For the purposes of this section, the following shall al....
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....rse of the proceedings under this section, notwithstanding that the reasons for such issue have not been included in the reasons recorded under sub-section (2) of section 148. Explanation 4.- For the removal of doubts, it is hereby clarified that the provisions of this section, as amended, by the Finance Act, 2012, shall also be applicable for any assessment year beginning on or before the 1st day of April, 2012." 8. For reopening assessment, it is mandatory that the Assessing Officer has reason to believe that the income chargeable to tax has escaped assessment. In the case before us, the audit wing of the Department brought to the notice of the Assessing Officer that an amount of Rs. 6,01,84,164/- escaped assessment. Immediately after ....