9911796707
TMI Blog2012 (7) TMI 178X X X X Extracts X X X X X X X X Extracts X X X X ..... e only requirement now is that the Assessing Officer should have "reason" to believe that income had escaped assessment, whatever be the source of that reason. 2. On the facts and in the circumstances of the case, the ld.CIT(A) has erred on facts and in law in holding that the Assessing Officer is found to be incorrect in assuming jurisdiction for the reopening of the case and the reassessment framed u/s 147 suffers from legal infirmities and the assessment so framed being invalid is annulled disregarding the fact that after the far reaching amendment in section 147 w.e.f. 01-04-1989, the only requirements before issue of a notice u/s 148 are the Assessing Officer should have reason to believe that income had escaped assessment and he shou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT Vs. Ghanshyam (HUF) - 315 ITR 1. The learned DR has also pointed out that Explanation 2(b) of Section 147 clearly provides that when no assessment has been made and it is noticed by the Assessing Officer that the assessee has understated the income, it would be a case of escapement of income chargeable to tax. He, therefore, requested that the order of the CIT(A) should be reversed and that of the Assessing Officer should be restored. 3. The learned counsel for the assessee, on the other hand, stated that in the computation of income, the assessee has clearly mentioned that during the accounting year relevant to assessment year under consideration, the assessee has received a sum of Rs. 37,20,222/- on account of land compulsorily acqui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of CIT Vs. Smt. Jyoti Devi - 218 CTR 264. He also stated that on the facts of the assessee's case, the decision of Hon'ble apex Court in the case of Rajesh Jhaveri Stock Brokers P.Ltd. (supra) relied upon by the learned DR would not be applicable. He, therefore, submitted that the order of learned CIT(A) should be sustained and the Revenue's appeal may be dismissed. 4. We have carefully considered the arguments of both the sides and perused the material placed before us. In the return of income, the assessee gave following note:- "The assessee received Rs.3720222 on A/c of enhanced compensation against land compulsorily acquired, alongwith interest of Rs.2008920 after deduction of Rs.210937 as tax. It was released on Bond by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee lady had received a sum of Rs.20,08,92/= on account of interest on delayed payment of enhanced compensation on 11.01.2003 from LAO, HUDA, Faridabad, but this interest income of Rs.2,08,920/= was not declared by her in her return of income for the relevant assessment year viz. A.Y. 2003-2004 though the same was taxable. In view of this I reason to believe that this income of Rs.20,08,920/= chargeable to tax has escaped assessment for the A.Y. 2003-2004. In view of the above, proceedings u/s 17 of I.T.Act 1961 are hereby initiated against the assessee for A.Y. 2003-04 by issuance of the notice u/s 148 to bring the tax the above mentioned undisclosed income of Rs.20,08,920/= and also any other income chargeable to tax which has e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elective scrutiny of returns. These aspects were highlighted by one of us (D.K. Jain J.) in Apogee International Limited v. Union of India [1996] 220 ITR 248 (Delhi). It may be noted above that under the first proviso to the newly substituted section 143(1), with effect from June 1, 1999, except as provided in the provision itself, the acknowledgement of the return shall be deemed to be an intimation under section 143(1) where (a) either no sum is payable by the assessee, or (b) no refund is due to him. It is significant that the acknowledgement is not done by any Assessing Officer, but mostly by ministerial staff. Can it be said that any "assessment" is done by them? The reply is an emphatic "no". The intimation under section 143(1)(a) was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee and it has become final. The notice under Section 148 has been issued on the basis of same note given by the assessee in the return of income and the TDS certificate which was filed in the original return. The Assessing Officer has already considered the same while issuing the notice and formed an opinion that credit for TDS is not allowable as the income was not offered. Subsequently, by issuing notice under Section 148, he changed his opinion and came to the conclusion that interest income is taxable in AY 2003-04. It is a clear case of change of opinion. The Hon'ble Madras High Court in the case of Bapalal and Co. Exports Vs. JCIT (OSD) - 289 ITR 37, Hon'ble Delhi High Court in the case of Shipra Srivastava and Another (supra) and H ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
