TMI Blog2012 (9) TMI 392X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs.1,50,000 forming part of the cash flow. Other amounts are less than by Rs.25,000 which confirmation were not called for. Similarly Rs.7 lakhs was advanced to the Managing Director cannot be taxed in the hands of the assessee as unexplained amount in the cash flow. Both these issues therefore could not have been issue for income having escaped for issue of notice u/s.148. As no other additions have been made and there is no whisper for the purported information available to the Assessing Officer we are of the considered view that the issue of notice u/s.148 is invalid and therefore, the consequent assessment u/s.143(3)/147 made by the Assessing Officer also becomes invalid and liable to be quashed – Decided in favor of assessee - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tice u/s 148 of the of the Income Tax Act, 1961 (Hereinafter referred as the Act ) on 30.03.2009. In response to the said notice the assessee filed a petition on 29.04.2009 for seeking of time for filing of Return of Income. However on 22nd June 2009, the assessee filed the Return of Income u/s 148 by declaring the same income as declared in the Return of Income filed u/s 139. Thereafter the assessee in his letter dated 2nd July 2009, requested the Assessing Officer to provide the causes of reopening u/s 147 of the Act. In response to the said request letter of the assessee the Assessing Officer was kind enough to provide the causes of reopening. During the course of assessment proceedings, all the particulars requisitioned by the Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w provides that a period of six years would be given only when the purported escaped income would lead to non-payment of tax of Rs.1 lakh. He pointed out that the merit additions made by the Assessing Officer do not have any link to the purported escapement of income for issue of notice u/s.148 was therefore purportedly made when the facts as were given in the original return processed u/s.143(1) were adequate to hold otherwise. The learned Counsel for the assessee vehemently argued that having found no linking to the purported information the assessee was subjected to Section 148 beyond the period of four years when the purported notice u/s.148 ought to have been issued by 31.3.2007. The learned CIT(A) held the same as not convincing as en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the extent that the gifts obtained subsequent to the marriage solemnized in 2000 was submitted to the Assessing Officer by way of cash flow indicating the holding of the assets in the hands of the assessee Rs.1,50,000 and evidence for having received the advance of Rs.7 lakhs from the Company in which the assessee was the Director was not merely self-sufficient becomes part of the return of income filed by the assessee accepted u/s.143(1). The nature of additions made by the Assessing Officer is not income having escaped assessment but merely a change of opinion after the issue of invalid notice u/s.148 after a period of four years. The learned Counsel for the assessee submitted that the information available was not linked to these inf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd circumstances of the case, we are inclined to hold with respect to the issue of assuming jurisdiction u/s.148 belatedly, in our opinion, , if in the course of proceedings under section 147, the Assessing Officer were to come to the conclusion, that any income chargeable to tax, which, according to his `reason to believe', had escaped assessment for any assessment year, did not escape assessment, then, the mere fact that the Assessing Officer entertained a reason to believe, albeit even a genuine reason to believe, would not continue to vest him with the jurisdiction, to subject to tax, any other income, chargeable to tax which the Assessing Officer may find to have escaped assessment, and which may come to his notice subsequently, in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the income which he has initially formed a reason to believe had escaped assessment, has as a matter of fact not escaped assessment, it is not open to him independently to assess some other income. If he intends to do so, a fresh notice under section 148 would be necessary, the legality of which would be tested in the event of a challenge by the assessee. We, on this issue, would basically to find the meaning of the intention of the legislation in prescribing a time limit u/ s.149(1)(b). The learned CIT(A) has upheld the assessment having been passed on 31.12.2009 which ought to have been on the basis of facts could only be passed up to 31.3.2007. It is another matter that if on merits the issue to be considered u/s.148 would lean in f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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