TaxTMI 
TaxTMI 
2022 (9) TMI 189
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....to as the "Act") pertaining to Assessment Year (A.Y) 2012-2013. 2. As transpires from the orders of the authorities below, the revisionary powers were exercised by the Ld. PCIT with respect to the assessment order passed in the case of the assessee for the impugned year u/s.143(3) r.w.s. 147of the Act on 15.11.2019 and the said order was held to be erroneous causing prejudice to the revenue for the reason that the Assessing Officer (A.O) had failed to verify the capital gain returned by the assessee on property sold during the year with respect to the provisions of Section 50C of the Act. Meaning thereby that the A.O. had failed to substitute the sale consideration of the property sold by the assessee with its stamp duty value which was ....
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....pital gain earned on sale of land was not the reason for reopening at all and the AO was not empowered to go beyond the scope of reasons recorded for reopening as per section 147 of the Act. Therefore the AO not being empowered to consider the issue of long term capital gain on sale of land, non examination of this issue could not have resulted in the assessment order passed being erroneous. 4. Ld. D.R. on the other hand argued that under the provisions of Section 147 of the Act, the A.O. can look into matters beyond the scope of reasons recorded for reopening and the A.O. therefore having not considered the issue of capital gains earned on sale of land, the order passed by him had been rightly held to be erroneous so as to cause prejudi....
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....f the Act. 6. We find merit in the contention of the Ld.Counsel for the assessee that the assessment order passed by the AO could not be said to be erroneous since the issue of examination of long term capital gain on sale of land was beyond his domain as per section 147 of the Act. 7. A bare perusal of the provisions of section 147 reveals that the jurisdiction of the AO is confined to assess issues on which he has reason to believe that income has escaped assessment and it is only if during the course of assessing these incomes that he is made aware of any other income escaping assessment that he can assess the other such income also. This is evident from the provisions of section 147 which are reproduced as under: 147. If ....
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....al assessment in case of the assessee was completed under section 143(3) of the Act on 06-02-2014. Subsequently, the assessment was reopened under section 147 of the Act and ITA 640/Mum/2021 notice under section 148 of the Act was issued to the assessee on 26-03-2018. The reason recorded for reopening of assessment under section 147 of the Act, a copy of which is at page 40 of the paper book, would reveal that for assessing the escaped income of Rs.2,00,50,000/- being the contribution received from certain members towards infrastructure facilities, the assessing officer had reopened the assessment. Ultimately, the assessing officer completed the assessment under section 143(3) r.w.s. 147 of the Act assessing the alleged escaped income of Rs....
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....sessment. Thus, on a holistic reading of section 147 of the Act it becomes very much clear that along with escaped income for which the assessment was reopened, the assessing officer can assess other escaped income which subsequently comes to his notice in course of re-assessment proceedings. In the facts of the present case, undisputedly, the issues raised by learned PCIT neither were the subject matter of reopening as per reasons recorded, nor did such matter come to the notice of the assessing officer in course of re-assessment proceedings. 10. The reopening of assessment as contemplated under section 147 of the Act is for the specific purpose of assessing the escaped income. Therefore, in a re- assessment proceeding, the assess....