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TMI Blog2012 (9) TMI 392X X X X Extracts X X X X X X X X Extracts X X X X ..... ating the gift of Rs.1,50,000 received from the relatives as unexplained cash credit u/s 68 of the Income Tax Act, 1961 and the same is liable to be deleted. 3. That, the Ld. Authorities below failed to appreciate the provisions of section 147 of the Act in proper prospective and reopening of the case u/s 147 of the Act is illegal and liable to be quashed. 4. That, the Ld. Commissioner of Income Tax (Appeals) is wrong in dismissing the grounds of appeal of the appellant that the assessment order is barred by limitation with an observation, since the ITNS-51 was not received, the exact date of service is not known." 2. The brief facts as have been brought on record are that the assessee is an individual deriving income from Salary and Bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 31.12.2009. The lengthy submission of the appellant supporting the plea that the order is barred by limitation is not convincing. The Assessing Officer has not returned I.T.N.S-51. Therefore, the exact date of service is not known. In any case since the order was made on 31.12.2009, no merit is found in this ground and accordingly, Ground No.2 of the appeal is dismissed." He also confirmed the disallowance/additions which the learned Counsel for the assessee will relate herein after. 5. The learned Counsel for the assessee submitted that the Assessing Officer has not given a whisper of the purported information brought on record by him in pursuance to notice u/s.148 on the body of the order as may be perused. The dates are significant t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e six years ago was not an escapement of income which was noted by the Assessing Officer in his reasons to believe income having escaped assessment. He submitted that that the reason the Assessing Officer has not even reproduced the reasons which were objected to by the assessee at the time of hearing u/s.147/148. The learned CIT(A) therefore relying on the date of order alone erred in dismissing the grounds of appeal that the initiation of proceedings u/s.147 is bad in law insofar as they are arbitrary, not correct, contradictory to the weight of evidence on record. The learned CIT(A) ought to have addressed the situation when he confirmed the order was made on 31.12.2009 u/s.143(3)/147 when he only held - it was not convincing. The deadli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to be considered in the impugned Assessment Year when the law provides that the limit of four years for issuing notice may be extended to six years if the tax on escaped income is Rs.1 lakh or more. He submitted that on merits the assessee was to explain the nature of gifts received , held by him for over one year wherein specific finding by the Assessing Officer was not shown in the balance sheet as on 31.3.2001. The learned Counsel for the assessee as of now has explained the amount of advance of Rs.7 lakhs to M/s. Classic Builders by the assessee was not explained to the Assessing Officer by way of furnishing the balance sheets of M/s.Classical Builders. He supported the orders of the authorities below for his part of submissions. 7. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceedings. This interpretation will no longer hold the field after the insertion of Explanation 3 by the Finance (No. 2) Act of 2009. However, Explanation 3 does not and cannot override the necessity of fulfilling the conditions set out in the substantive part of section 147. An Explanation to a statutory provision is intended to explain its contents and cannot be construed to override it or render the substance and core nugatory. Section 147 has this effect that the Assessing Officer has to assess or reassess the income ("such income") which escaped assessment and which was the basis of the formation of belief and if he does so, he can also assess or reassess any other income which has escaped assessment and which comes to his notice during ..... X X X X Extracts X X X X X X X X Extracts X X X X
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