TMI Blog2009 (9) TMI 613X X X X Extracts X X X X X X X X Extracts X X X X ..... te register, press register, stock register, purchase and sale bills which were test checked - It was, held in CIT vs. Eicher Ltd. (2007 -TMI - 2063 - HIGH COURT , DELHI) that if the AO while passing original assessment order, chose not to give any finding in this regard that could not give him or his successor in office a reason to reopen the assessment of the assessee or to contend that because the facts were not considered in the assessment order a full and true disclosure was not made - reassessment was not permissible – Revenue’s appeal dismissed - IT APPEAL NOS. 486 AND 501 (JODH.) OF 2008 - - - Dated:- 14-9-2009 - Member(s) : B. R. JAIN., K. S. S. PRASADA RAO. ORDER-B.R. JAIN, A.M.: These cross-appeals are against the or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er recording reasons as under: "A survey under s. 133A of IT Act was conducted at the business premises of the assessee firm on 25th March, 2003 and the assessment for the asst. yr. 2003-04 in this case was completed under s. 143(3) of IT Act on 16th March, 2005 at total income of Rs. 1,52,130. At the time of survey the books of account, i.e., cash book, ledger, Nakal and loose papers were found and impounded. The assessee has now filed an application before the CIT for seeking permission to release the books of account stating that the assessment has already been completed and demand has also been paid. In this connection, it is noticed from the books of account as well as from the order passed by the AO on 16th March, 2005 that the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,30,085 in the name of M/s K.C. Sons, the amounts of all these entries are not found in the register, cash book, ledger impounded for the relevant period. From the facts narrated above, it is obvious that the income chargeable to tax Rs. 8,57,677 has escaped assessment in terms of provisions of Expln. 2(c) to s. 147 of IT Act. Therefore, it is fit case for issue of notice under s. 148 and necessary approval under s. 151(1) may kindly be accorded." Notice under s. 148 was accordingly issued on 23rd March, 2007. 6. The reassessment was completed on 15th Nov., 2007 at an income of Rs. 34,93,043 by making addition of Rs. 33,72,583 as income from undisclosed sources on the basis of material discovered during the course of survey. 7. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us documents discovered during survey which were giving rise to income from other sources. It was imperative on the part of the assessing authority to have taken into account each and every document as such and assess the income accordingly. The AO before release of impounded documents had a prima facie opinion that the income chargeable to tax has been under-assessed by an amount of Rs. 8,57,677. Thus, income has escaped assessment in terms of provisions of Expln. 2(c) to s. 147 of IT Act The AO, therefore, after recording reasons and taking approval as required under s. 151(1) of IT Act, proceeded to issue notice under s. 148 of IT Act which is a valid notice. Reliance has been placed on the judgment rendered by Hon'ble Delhi High Court i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rity. He has also recorded the fact that the books of account and other documents were impounded during the course of survey and same were lying with the Department since then. These impounded books contain cash book, ledger, journal, Gadda nook, debit and credit vouchers, loose papers, gate register, press register, stock register, purchase and sale bills which were test checked. Thereafter, assessment was completed by him under s. 143(3) of IT Act at a total income of Rs. 1,52,130 as against declared income of Rs. 34,889. It is, therefore, discernible from the assessment order that material discovered during the course of survey at business and office premises of the assessee has duly been considered by the assessing authority before comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was a case of deemed escapement of income does not justify action under the peculiar fact that the issue was subject-matter of consideration on the part of the assessing authority. Reassessment was not possible even within the four year time-limit, because even in such a case reassessment is based upon a change of opinion, which is not permissible unless some new material or information subsequent to original assessment is evident. Reassessment jurisdiction in a case like this is no solution. This view finds support from the judgment rendered by Hon'ble Allahabad High Court in CIT vs. Krishna Textiles (2009) 315 ITR 271 (All). 13. The judgment rendered by Hon'ble Delhi High Court in the case of Consolidated Photo Finvest Ltd. vs. Asstt. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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