TaxTMI 
TaxTMI 
2021 (9) TMI 738
X X X X Extracts X X X X
X X X X Extracts X X X X
....1961 (here-in-after referred to as "the Act") relevant to the Assessment Year 2011-2012. 2. The assessee has raised the following grounds of appeal: 1. The learned CIT(A)-13, Ahmedabad, erred in law and/or on facts in confirming the addition of Rs. 40,00,000/- made by the AO, as Income from other sources. 2. The learned CIT(A) -13, Ahmedabad, erred in law and/or on facts in confirming the addition of Rs. 40,00,000/- made by the AO, u/s.56(2)(vii) of the IT Act as amount received without consideration. 3. The learned AO as well as learned CIT(A), erred in not considering various facts, submissions, explanations and clarifications as given by the appellant and further erred in not appreciating the facts and law i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e appeal an opportunity of being heard, pass such orders thereon as it thinks fit. The power of the Tribunal in dealing with appeals is thus expressed in the widest possible terms. The purpose of the assessment proceedings before the taxing authorities is to assess correctly the tax liability of an assessee in accordance with law. If, for example, as a result of a judicial decision given while the appeal is pending before the Tribunal, it is found that a non-taxable item is taxed or a permissible deduction is denied, there is no reason why the assessee should be prevented from raising that question before the Tribunal for the first time, so long as the relevant facts are on record in respect of that item. There is no reason to restrict the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... is legal in nature and therefore the same can be raised at any stage in pursuance to the judgment of the Hon'ble Supreme Court in the case of NTPC Ltd (supra) . Hence we admit the additional ground of appeal raised by the assessee and proceed to adjudicate the same. 6. At the outset, the learned AR for the assessee contended that the proceedings under section 147 of the Act were initiated by the AO on account of escapement of income of the capital gain generated on the sale of the property. For this purpose, the learned AR drew our attention on page 2 of the paper book where the reasons recorded by the AO is placed. 7. However, the AO has made the addition under the provisions of section 56(2)(vii) of the Act on account of the money ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ase, as per AIR information, the assessee has sold immovable property worth Rs. 25,52,160/- during the F.Y. 2010-11 relevant to A.Y. 2011-12. The assessee has not filed his return of income for A.Y. 2011-12. Considering the facts of the case, I have reason to believe that assessee's income w.r.t. LTCG/LTCL has escaped assessment for A.Y. 2011-12 within the meaning of section 147 of the Act. Therefore, this is a fit case to initiate proceedings u/s.147 of the income tax Act, 1961. Issue notice u/s.148 of the Act. 9.1 On perusal of the above reasons, it is transpired that there was the property which was sold by the assessee but the assessee failed to disclose the income under the head capital gain on account of transfer of such p....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on goes, then there cannot be any addition on account of any other income which has come to the notice of the AO during the proceedings under section 147 of the Act. In holding so, we draw support and guidance from the judgment of Hon'ble Jurisdictional High Court in case of CIT vs. Mohmed Juned Dadani reported in 355 ITR 172 wherein it was held as under: In the result, it is held that the Tribunal was right in law in coming to the conclusion that when on ground on which the reopening of assessment was based, no addition were made by Assessing Officer in the order of assessment, he could not make additions on some other grounds which did not form part of reasons recorded by him. [Para 33 9.4 In view of the above, we draw our con....