TaxTMI 
TaxTMI 
2026 (1) TMI 1315
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....opening of the Assessment in case of Shri Abhishek Dixit for A.Y. 2016-17 u/s 147 of the Act. 1. Assessee is an individual. The return of income for the relevant assessment year was not filed by the assessee. 2. As per information available on the record which has been provided by the office of the DDIT/ADIT (Inv.)-1, Agra, it is found that the assessee has made transaction of total amount of Rs. 2,87,04,714/- in the property during the FY. 2015-16 relevant to A.Y. 2016-17. 3. On perusal of material/information available on records, it has been noticed that the assessee has made transaction of Rs. 2,87,04,714/- in property during the F.Y. 2015-16. The amount involved in this transaction of the assessee does not commensurate with the income declared in the ITR by the assessee and assessee has not declared the abovementioned investment in property in ITR. Therefore, the source of abovementioned amount remained unexplained & unverified. 4. In view of facts, I am of the opinion that these transaction amount of Rs. 2,87,04,714/- made in property, were the income of the assessee from the undisclosed sources and it is sufficient to believe that the asse....
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....n the meaning of section 147 of the Income Tax Act, 1961 on account of investment in property in Financial Year (F.Y.) 2015-16, the source(s) of which was not disclosed as the assessee had not filed his return of income for A.Y. 2016-17. 3.1 The Ld. AR further submitted that during the course assessment proceedings, the AO had accepted the explanation regarding the source of Rs. 2,87,04,714/- towards investment in the property but the AO further inquired into the residential status of the assessee and held that the assessee' income amounting to Rs. 35,43,224/- would be taxable in India on account of his residential status being treated as a resident. 3.2 The Ld. AR submitted that aggrieved with the said order the assessee filed an appeal before the Ld. CIT(A), which was dismissed by the Ld. CIT(A) and thus, the assessee was in appeal before us. 3.3 During the hearing before us, the Ld. AR filed a written submission wherein, relying upon the decision of the jurisdictional Hon'ble Delhi High Court in the case of ATS Infrastructure Ltd. vs. ACIT [(2024) 166 taxmann.com 61(Delhi)], it was submitted that it is a settled proposition that no addition can be sustained in the reass....
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....able in the eyes of law when the AO had accepted the explanation regarding the source of investment in property amounting to Rs. 2,87,04,714/- for which the assessment was reopened in the case of the assessee for the present AYs as per the reasons recorded as referred above in para no. 2 of this order. 5.1 In this regard, the relevant head-note of the decision of the Hon'ble Delhi High Court in the case of ATS Infrastructure Ltd. vs. ACIT (supra) are reproduced as under: Section 148, read with section 147, of the Income-tax Act, 1961 - Income escaping assessment - Issue of notice for (Recording of reasons) - Assessment years 2014-15 to 2016 17 - Whether Assessing Officer would have to establish that reassessment is warranted on account of information in its possession which appears to indicate that income chargeable to tax had escaped assessment but once assessment itself is reopened, it would not be confined to those subjects only ; this would, however, be subject only to one additional rider and that if, in course of reassessment, Assessing Officer ultimately comes to conclude that no additions or modifications are warranted under those heads, it would not be entitled....
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.... of the Income-tax Act, 1961, submissions have been urged before the Court confined to the following substantial question of law : Where upon the issuance of a notice under section 148 of the Income-tax Act, 1961 read with section 147, the Assessing Officer does not assess or, as the case may be reassess the income which he has reason to believe had escaped assessment and which formed the basis of a notice under section 148, is it open to the Assessing Officer to assess or reassess independently any other income, which does not form the subject-matter of the notice?" 17. We have approached the issue of interpretation that has arisen for decision in these appeals, both as a. matter of first principle, based on the language used in section 147(1) and on the basis of the precedent on the subject. We agree with the submission which has been urged on behalf of the assessee that section 147(1) as it stands postulates that upon the formation of a reason to believe that income chargeable to tax has escaped assessment for any assessment year, the Assessing Officer may assess or reassess such income "and also" any other income chargeable to tax which comes to his notice sub....