2009 (11) TMI 406

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..... N. Ramachandran Nair J.- The question raised in the appeal filed by the Revenue is whether the Tribunal was justified in confirming the order of the Commissioner of Income-tax (Appeals) cancelling the reassessment completed under section 147 of the Income-tax Act, 1961 in the case of the respondent for the year 1996-97. We have heard senior counsel appearing for the appellant and Sri P. Balakrish .....

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..... income and disallowing credit for TDS as the relevant income was not offered for assessment. According to the certificate of TDS filed along with the return of income, the assessee was paid rent amounting to Rs. 2,46,180 from State Bank of Mysore, Calicut Branch. This amount has not been included in the total income of the assessee. Balance-sheet shows sundry creditors at Rs. 62,03,601. The detai .....

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..... ommissioner of Income-tax (Appeals) was allowed vacating the revised assessment for the reason that the grounds stated for reopening were non-existent because in the first place, no income from house property was assessed even though the claim of TDS without disclosing income under this head was the ground for reopening.  Besides this, the Commissioner of Income-tax (Appeals) held that the As .....

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..... aped assessment. This does not necessarily follow that the reason for reopening should by itself lead to assessment of any income. In other words, in the course of reassessment all escaped income could be brought to tax and the Assessing Officer is not bound to confine to the grounds on which reopening is made. In this case the assessee claimed credit based on TDS certificate on rent, but without .....

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..... der section 143(3), we do not think such a recourse open to the Assessing Officer stands in his way of reopening the assessment under section 147, if he has reason to believe that income has escaped assessment. We find that the reasons recorded by the officer are sufficient to justify his belief that income has escaped assessment, no matter whether any addition could be sustained in the assessment .....

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