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2022 (9) TMI 660 - CALCUTTA HIGH COURTValidity of reopening of assessment u/s 147 - reopening the assessment on other grounds not mentioned in the reasons for reopening - different items of income not connected or related with the reasons to believe - whether “any other income” chargeable to tax which has escaped assessment and which has come to the notice of the AO in the course of the proceedings, can also be taxed and that there are two parts to the Section and they which had been joined by the words “and also”, cannot be treated as conjunctive but has to be disjunctive? - HELD THAT:- Even if the reasons recorded do not refer to a particular issue, the assessing officer would be entitled to assess the income or reassess the computation of income with regard thereto, if the same comes to his notice during the course of the proceedings for reassessment, however this can be done provided there is a valid notice u/s 148 that the assessing officer the jurisdiction to adopt proceedings u/s 147 of the Act and if the notice is illegal, the reassessment proceedings are invalid. We should bear in mind the decision in the case of GKN Driveshafts (India) Limited [2002 (11) TMI 7 - SUPREME COURT] wherein it was held that the assessing officer is bound to furnish reasons within a reasonable time and the noticee is entitled to file their objection to such notice and the assessing officer is bound to dispose of the same by passing a speaking order. Though the Explanation 3 inserted by the amendment empowers the assessing officer to assess the income in respect of any issue which has escaped assessment when such issue comes to his notice subsequently in the course of the proceedings under Section 147 notwithstanding that the reasons for such issue have not been included in the reasons recorded under Sub-Section 2 of Section 148, the prerequisite is there should be a valid notice. Admittedly, in the case on hand, the notice was held to be not sustainable. If that be so, AO cannot be stated to be empowered to make a roving enquiry into other issues which according to him came to his notice during the reassessment proceedings. The foundation of a reassessment proceeding is a valid notice and if this notice is held to be invalid the entire edifice sought to be raised on such foundation has to collapse. We are of the considered view that the tribunal was right in granting relief to the assessee.
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