TaxTMI 
TaxTMI 
2017 (3) TMI 1844
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....rtment, notice under section 148 of the Act was issued in this case on 23.03.2011 after recording the reasons and obtaining the approval. The assessee stated that return already filed may be treated as return filed in response to notice under section 148 of the Act. The Assessing Officer after calling explanation of the assessee considered the issue of agriculture income declared in a sum of Rs. 42 lacs and made addition of Rs. 14,97,774/- on account of 'income from other sources' as against total claim of agriculture income of Rs. 42 lacs. 4. The assessee challenged the re-opening of the assessment as well as addition on merit before ld. CIT(Appeals). However, appeal of the assessee has been dismissed. 5. The assessee in the present appeal has challenged upholding of the re-opening of assessment under section 147/148 of the Act as well as addition on merits. 6. The ld. counsel for the assessee reiterated the submissions made before authorities below. PB-15 is copy of the reasons recorded for re-opening of the assessment. The ld. counsel for the assessee by referring to the same, submitted that re-opening was made mainly on the reasons of excess deposit of Rs. 8,50....
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....opening of the assessment. The Assessing Officer only considered issue of agriculture income as undisclosed income of the assessee in respect of which no reasons have been recorded under section 148 of the Act for re-opening of the assessment. The Assessing Officer did not apply his mind to the material on record. It is a case of mere change of opinion and relied upon decision of the Hon'ble Supreme Court in the case of CIT Vs Kelvinator of India 320 ITR 561. 6(i) The ld. counsel for the assessee also submitted that there is no failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment at original assessment stage. He has submitted that even if Assessing Officer has made some mistake in assessing the income, a recourse to Section 147 is not available and the appropriate course would be for the CIT to pass an order under section 263 of the Act. In support of this proposition, he has relied upon decision of Delhi High Court in the case of B.B.C. Worldwide Ltd. Vs ADIT 135 DTR 86 in which it was also eld as under : "Conclusion : AO had conducted a detailed examination and thereafter, assessed the income of the assessee; ....
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....le Supreme Court in the case of CIT Vs Kelvinator of India Ltd. 320 ITR 561. I also rely upon decision of Hon'ble Gujrat High Court in the case of Garden Silk Mills P.Ltd. 237 ITR 668, Hon'ble Calcutta High Court in the case of Berger Paints (India) P. Ltd. 245 ITR 648 and Hon'ble Supreme Court in the case of Foramer France 264 ITR 566. Hon'ble Supreme Court in the case of Indian Oil Corporation 159 ITR 956 held that, "No case under section 148 is made out when the facts were known all along with to the revenue while making the original assessment". Hon'ble Supreme Court in the case of Associated Stone Industry Ltd. 224 ITR 560 held that, "Assessee shall have to disclose only primary facts". The ld. counsel for the assessee produced sufficient material on record to prove that assessee has disclosed all the income including agriculture income in the original return of income and statement of assessable income. The Assessing Officer issued specific show cause notice to the assessee at original assessment stage asking the details of all bank accounts and entries therein and details of agriculture income with proof. As noted above, the assessee furnished replies bef....
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....below : Sl. No. Sources of income Deposits in Banks 1 Rent received ( excluding house tax of Rs. 2,09,508/ and interest of Rs. 35,846/paid by the assessee ) 2,60,768 OBC, Sifsa 10,16,203 2 Salary received 3,18,000 OBC, Sirsa 10,732 3 Business income 1,92,180 SBI, Dabwali 2,13,275 4 Income from other sources 2,44,885 SBI, Abohar 71,580 5 Agricultural income 42,00,000 SBI, Chautala 47,53,805 6 SBI, Chautala (Minor'saccount) 832 Total 52,15,833 Total 60,66,427 The assessee has not fully and truly disclosed all material facts necessary for assessment for the relevant assessment year Therefore, the excess deposit of Rs. 8, 50,594/- made by the assessee is his undisclosed income which has escaped assessment. I have therefore reasons to believe that income of Rs. 8, 50,594/- has escaped assessment. Accordingly, notice u/s 148 needs to be issued to assess-or reassess such income and also any other income chargeable to tax which comes to notice subsequently in the course of proceedings under section 147 of the Income tax Act. Sd/- ....