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2012 (12) TMI 190 - AT - Income TaxValidity of assessment passed u/s 147 when A.O. while completing re-opening assessment, did not make any addition on reasons recorded and made different addition - Held that:- Assessment was reopened on ground that assessee has obtained accommodation entries in the form of share application money/capital gains/gifts etc, which escaped assessment but while making addition, A.O. made addition on different transaction that of sale of shares. Admittedly the reasons recorded and additions made are different transactions. A.O. had jurisdiction to reassess income other than income in respect of which proceedings u/s 147 were initiated but he has no jurisdiction in doing so when the very reason for initiation for those proceedings cease to survive. The legislature can not be presumed to have intended to give blanket powers to the A.O. that on assuming jurisdiction u/s 147 regarding assessment or reassessment of escaped income, he would go on making scrutiny enquiry and thereby including different items of income not connected or related with the reasons to believe on the basis of which he assumed jurisdiction. Therefore, jurisdiction acquired by the A.O. u/s 147 is not in accordance with law. Therefore, the order of the A.O. is liable to be quashed - Decided in favor of assessee.
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