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2015 (8) TMI 614

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..... ssee {viz. Sun Engineering ([1992 (9) TMI 1 - SUPREME Court] )} and also keeping in view that it is the constitutional obligation of every assessee to disclose his total income on which it is to pay tax, we are of the clear opinion that the two parts of Section 147 (one relating to 'such income' and the other to 'any other income') are to be read independently. The phrase 'such income' used in the first part of Section 147 is with regard to which reasons have been recorded. Under Section 148(2) of the Act, and the phrase 'any other income' used in the second part of the Section is with regard to where no reasons have been recorded before issuing notice and has come to the notice of the Assessing Officer subsequently during the course of the .....

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..... peals) which confirmed the validity of reopening under Section 147 of the Act. However, the Appellate Commissioner did not accept the addition of ₹ 53,00,000/- and disallowed only 20% of the total payment of ₹ 1,65,00,000/- under Section 40A(3) of the Act. 2. Challenging the order of the Appellate Commissioner confirming the validity of reopening for the assessment under Section 148 of the Act, the assessee preferred an appeal before the Tribunal. The Revenue also preferred a separate appeal against the order of the Appellate Commissioner contending that the disallowance made by the Appellate Commissioner under Section 40A(3) of the Act was wrong and the disallowance to the extent of ₹ 53,00,000/- as made by the Assessi .....

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..... e merits of the matter regarding the genuineness of the expenditure claimed towards compensation paid for vacating the premises after adjudicating the appeal filed by the assessee regarding validity of the assessment made under Section 147 of the Act and recorded a perverse finding'. 6. We have heard Sri.K.V.Aravind, learned counsel for the Revenue in both the appeals as well as Sri.S.Parthasarathi, learned counsel appearing for the assessee in both the appeals at length and have perused the records. With consent of the learned counsel for the parties, these appeals are being heard and decided at the admission stage. 7. The question as to 'whether the Tribunal would be correct in upholding reassessment proceedings when the rea .....

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..... here no reasons have been recorded before issuing notice and has come to the notice of the Assessing Officer subsequently during the course of the proceedings, which can be assessed independent of the first part, even when no addition can be made with regard to 'such income', but the notice on the basis of which proceedings have commenced, is found to be valid. 8. We have no reason to differ with the view taken by the Coordinate Bench of this Court in the case of Govindaraju - vs - Income Tax Officer cited supra, and thus we answer the first question in favour of the Revenue and against the assessee. 9. As regards the second question, in view of the answer of the first question being in favour of the Revenue, the second questi .....

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