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2021 (2) TMI 644 - KARNATAKA HIGH COURTReopening of assessment u/s 147 - addition of undisclosed income in the hands of the assessee or HUF - assessee who worked as real estate agent filed return of income in individual capacity and not as HUF - During the course of the search it was stated by him that he had not declared / disclosed income from real estate transaction and the same would be declared in the return of income of HUF - tribunal set aside the order of assessment mainly on the ground that the Assessing Authority has not recorded independent findings to revoke re-assessment proceeding and the order of re-assessment has been passed on the directions of the Commissioner of Income Tax (Appeals) - Whether tribunal is right in law in holding that re-assessment order is bad in law ignoring Section 150 read with Section 153 and Explanation 2 to Section 153 of the Act ? - HELD THAT:- The tribunal has not considered the provisions of Explanation 2(b) to Section 153 of the Act, by which the Assessing Authority is empowered to include any income excluded from total income of a person and is treated to be income of another person, then such an assessment of the income on such other person shall be deemed to be made in consequence of or to give effect to any finding or direction contained in the said order. Therefore, since the order of assessment has been passed by the tribunal without taking note of Section 150 read with Section 153 as well as explanation 2 to Section 153 of the Act, we answer the additional substantial question of law in favour of the revenue and against the assessee. Therefore, we do not propose to deal with the rival contentions. In the result, the order passed by the tribunal dated 27.04.2016 is quashed and the tribunal is directed to decide the appeal by taking into account the provisions of Section 150 and Section 153 of the Act after affording an opportunity of hearing to the parties.
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