9911796707
TMI Blog2015 (4) TMI 1103X X X X Extracts X X X X X X X X Extracts X X X X ..... smissed the appeal of the Revenue. 4. The matter arose out of reopening of the assessment of the assessee under section 147 of the Income-tax Act, 1961. The Assessing Officer after recording the reasons issued notice under section 147 of the Act to the assessee. Upon the assessee appearing, the assessment order has been passed. In the assessment ultimately made by the Assessing Officer, the findings have been recorded with regard to escaped assessment relating to the cost of construction on the basis of the report of the DVO ; but there is no adverse finding on any of the reasons that the Assessing Officer had recorded while issuing notice as no addition was made by the Assessing Officer on account of the alleged undisclosed investment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iation allowance or any other allowance, as the case may be, for the assessment year concerned (here after in this section and in sections 148 to 153 referred to as the relevant assessment year). Explanation 3.-For the purpose of assessment or reassessment under this section, the Assessing Officer may assess or reassess the income in respect of any issue, which has escaped assessment, and such issue comes to his notice subsequently in the course of the proceedings under this section, notwithstanding that the reasons for such issue have not been included in the reasons recorded under sub- section (2) of section 148." 8. From a consideration of the aforesaid provision, it is evident that the power to assess or reassess any escaped assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 147 of the Act, it has been further clarified in Explanation 3 that the assessment can be made not only with respect to the grounds for which reasons have been recorded under section 148(2) of the Act but on any other issue which comes to his notice subsequently in the course of the proceedings under this section, notwithstanding that the reasons for such issue had not been included in the reasons recorded. 11. The Tribunal has relied upon a decision of the Rajasthan High Court in the case of CIT v. Shri Ram Singh [2008] 306 ITR 343 (Raj), in paragraphs 23 to 29 of which it has been held as follows (page 351) : "Reverting back to the language of section 147, this much is clear, that the sine qua non for conferment of jurisdiction on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... caped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income or also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, or recompute the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned (here after in this section and in sections 148 to 153 referred to as the relevant assessment year).' But then if it were to be so read, the word 'also' becomes redundant, and to make sense of the sentence, the section would be required to be read by ignoring the words 'also', as well, in which eve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax, which has escaped assessment, and which has come to his notice subsequently, in the course of proceedings under section 147. To clarify it further, or to put it in other words, 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 escape ..... X X X X Extracts X X X X X X X X Extracts X X X X
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