TMI Blog2012 (6) TMI 616X X X X Extracts X X X X X X X X Extracts X X X X ..... there is some addition on the ground on which reassessment had been initiated, that the Assessing Officer can make additions on any other ground on the basis of which income may have escaped assessment – Against Assessee. - 421 of 2010 - - - Dated:- 13-9-2010 - ADARSH KUMAR GOEL, AJAY KUMAR MITTAL, JJ. JUDGMENT Ajay Kumar Mittal J.- 1. This appeal under section 260A of the Income-tax Act, 1961 (for short "the Act'"), has been filed by the assessee against the order dated December 11, 2009, passed by the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar (in short "the Tribunal"), in I.T. A. No. 343/ASR/2009 in respect of the assessment year 2001-02. 2. The assessee has claimed the following substantial questions of l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has understated his income and a total amount of Rs. 5,29,86,224 has been earned by the assessee by dubious means. It was further observed that dur- ing the accounting period relevant to the assessment year in question, the assessee was the chairman of the Punjab State Forest Development Corporation and he received payments of Rs. 1,23,429 by transfer to his Bank Account No. 01190005761 which included regular transfer of Rs.2,500 per month besides other amounts. According to the Assessing Officer, the said receipts in the sum of Rs. 1,23,429 were assessable in the hands of the assessee under the head "Salary". Besides, the assessee in his capacity as chairman of the aforesaid corporation had enjoyed the facility of residential acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee was that the Assessing Officer could not make additions in respect of the income which had not escaped assess- ment for which no notice had been given to the assessee under section 148 read with section 147 of the Act. To fortify this submission, reliance on behalf of the assessee was placed on the judgment of this court in Vipan Khanna v. CIT [2002] 255 ITR 220 (P H) and CIT v. Atlas Cycle Indus- tries [1989] 180 ITR 319 (P H). The Commissioner of Income-tax (Appeals), after conversing with the Assessing Officer, held as under : "It is correct that no addition has been made in the assessment order on the issues, on which the case was reopened under section 147. Hence, the judgment of the hon'ble Punjab and Haryana High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port of this submission, reliance on behalf of the Revenue was placed on a decision of the apex court in Raymond Woollen Mills Ltd. v. ITO [1999] 236 ITR 34 (SC). A specific reference was also made by the Revenue to the Explanation 3 inserted by Finance (No. 2) Act, 2009, with effect from April 1, 1989, in support of the second submission. 6. The Tribunal made a marathon exercise and exhaustively delved upon the issues with reference to judicial enunciations produced on record by both the sides. The Tribunal held that the issues of additions qua the rea- sons were not adjudicated by the Commissioner of Income-tax (Appeals) and the assessment was cancelled purely on legal grounds without adju- dicating the case on the merits and the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parties before adjudicating the case afresh. Accordingly, the appeal of the Revenue is allowed for statistical purposes." 7. This is how the assessee is before us in present appeal. 8. Learned counsel for the assessee submitted that the Assessing Officer had reopened the assessment by issuing notice under section 148 of the Act on the ground that the income from salary, perquisites and unex- plained cash deposits in various accounts along with interest thereon had escaped assessment. The counsel urged that the Assessing Officer, how- ever, while passing the reassessment order had sought to make addition of another amount without any addition having been made on the ground on the basis of which reassessment had been initiated. Accor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e reasons recorded under sub- section (2) of section 148." 12. A plain reading of Explanation 3 to section 147 clearly depicts that the Assessing Officer has power to make additions even on the ground on which reassessment notice might not have been issued in case during the reassessment proceedings, he arrives at a conclusion that some other income has escaped assessment which comes to his notice during the course of proceedings for reassessment under section 148 of the Act. The provision no where postulates or contemplates that it is only when there is some addition on the ground on which reassessment had been initiated, that the Assessing Officer can make additions on any other ground on the basis of which income may have escaped ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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