TMI Blog2009 (4) TMI 467X X X X Extracts X X X X X X X X Extracts X X X X ..... imed excessive loss, deduction, allowance or other relief, in the return the Assessing Officer is free to initiate income escaping assessment under section 147 - reversing the order of the Tribunal and restore the matter to the Tribunal for considering the assessee's claim of exemption in the appeal on the merits. - - - - - Dated:- 2-4-2009 - RAMACHANDRAN NAIR C. N., SURENDRA MOHAN K. JJ JUDGMENT C. N. Ramachandran Nair J.- The Revenue is in appeal before us challenging the order of the Income-tax Appellate Tribunal whereunder they have cancelled the income escaping assessment completed on the respondent under section 147 of the Income-tax Act, 1961, on the ground that the officer has no jurisdiction to make the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 147 including the amount received from the foreign company as income. According to the assessee, the proceedings stated to have been completed by the Assessing Officer under section 143(1)(a) was not served on him. Even though the assessee challenged the revised assessment in first appeal, the assessee did not take the contention that the reassessment was without jurisdiction. On the merits, the Com- missioner of Income-tax (Appeals) dismissed the appeal. The assessee filed a second appeal before the Tribunal and in the appeal, the assessee raised an additional ground on jurisdiction of the officer to make income escaping assessment under section 147 of the Act. Since the additional ground raised in appeal was only on pure question of law, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ior counsel appearing for the respondent-assessee on the other hand referring to detailed findings in the Tribunal's order contended that the Tribunal itself referred to the entire records of the case and found that the statement of the Assessing Officer in the affidavit filed that intimation was issued to the assessee under section 143(1)(a) was factually incorrect. His contention is that the Assessing Officer without issuing intimation under section 143(1)(a) cannot proceed to make income escaping assessment under section 147 of the Act. He has relied on the findings of the Tribunal and several decisions of the Supreme Court and that of the High Courts referred to in the Tribunal's order. 4. Since counsel appearing for the Revenue sou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t year. Explanation 1.-Production before the Assessing Officer of account books or other evidence from which material evidence could, with due diligence, have been discovered by the Assessing Officer will not necessarily amount to disclosure within the meaning of the fore- going proviso. Explanation 2.-For the purposes of this section, the following shall also be deemed to be cases where income chargeable to tax has escaped assessment, namely :- (a) where no return of income has been furnished by the assessee although his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax ; (b) wher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent based on return filed does not bar the Assess- ing Officer from initiating proceedings under section 147 based on the materials furnished by the assessee in the return. The purpose of section 147 is, therefore, not only to bring to tax income that has escaped assess- ment but to rope in income that would escape assessment if return is accepted and assessment made based on it. In other words, income escap- ing assessment can be made after assessment or without assessment. In this case, the Assessing Officer while scrutinising the return filed by the assessee noticed that the assessee though paid a huge amount of Rs.63,94,000 towards advance tax and Rs. 5,00,000 towards self-assessed tax, has claimed complete exemption on the income on wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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