Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (9) TMI 1466 - ITAT LUCKNOWReopening of assessment u/s 147 - reason to believe on the basis of AIR information - Cash Deposits of the appellant bank accounts - addition was made on the basis of G.P. ratio - HELD THAT:- Addition has been made on the basis of net profit ratio to the turnover. The Hon'ble Bombay High Court in the case of Black & Veatch Prichard Inc. [2016 (4) TMI 1365 - BOMBAY HIGH COURT] following the judgment of Jet Airways [2010 (4) TMI 431 - HIGH COURT OF BOMBAY] has decided the issue against the Revenue wherein held as agreeable with the submissions which has been urged on behalf of the assessee that s. 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 AO may assess or reassess such income "and also" any other income chargeable to tax which comes to his notice subsequently during the proceedings as having escaped assessment. The words "and also" are used in a cumulative and conjunctive sense. To read these words as being in the alternative would be to rewrite the language used by Parliament. Our view has been supported by the background which led to the insertion of Expln. 3 to s. 147. Parliament must be regarded as being aware of the interpretation that was placed on the words "and also" by the Rajasthan High Court in Shri Ram Singh [2008 (5) TMI 200 - RAJASTHAN HIGH COURT] Parliament has not taken away the basis of that decision. While it is open to Parliament, having regard to the plenitude of its legislative powers to do so, the provisions of s. 147(1) as they stood after the amendment of 1st April, 1989 continue to hold the field. However, Hon'ble Supreme Court has admitted the SLP filed by the Revenue. However, mere admission of SLP by the Hon'ble Supreme Court will not amount to overruling of its earlier judgment in the case of Jet Airways(Supra).Ground No.1 of the appeal of assesseeis allowed
|