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2015 (4) TMI 1103

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..... . 1. Heard learned counsel for the appellant. 2. Both the appeals arise out of a common order and. therefore, they have been heard together and are being disposed of by this common order. 3. These appeals have been preferred against the order dated November 30, 2009, passed by the Income-tax Appellate Tribunal, Patna Bench, Patna, by which the Tribunal has dismissed 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 Asses .....

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..... ieve that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income and 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 recomputed 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). 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 .....

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..... ore issuing notice under section 147 of the Act for initiating proceedings, the Assessing Officer is required to record his reasons for doing so. Thus, the assumption of jurisdiction by him is the reason to believe that certain income of the assessee has escaped assessment or reassessment, which reasons have to be recorded by him in writing. 10. It is true that under the provisions of section 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 fo .....

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..... comes to his notice subsequently in the course of the proceedings under section 147' is required to be given its due, or is required to be ignored, or is required to be interpreted as 'or'. Obviously because, if it is to be interpreted as 'or', then the language would read as under : '147. If the Assessing Officer has reason to believe that any income chargeable to tax has escaped 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 al .....

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..... nificance, being of conjunctive nature, and leaves no manner of doubt, in our opinion, that it is only when, in proceedings under section 147 the Assessing Officer, assesses or reassesses any income chargeable to tax, which has escaped assessment for any assessment year, with respect to which he had 'reason to believe' to be so, then only, in addition, he can also put to tax, the other income, chargeable to 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 chargea .....

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