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TMI Blog2017 (6) TMI 333X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment, these are taken up first for disposal. 3. Ld. Counsel for the assessee submitted that assessments for all these years except for assessment year 2010-2011, were originally completed u/s.143(1) of the Income Tax Act 1961, (in short ''the Act''). As per ld. Authorised Representative for assessment year 2010- 2011 assessee had filed a return of income only after issue of notice u/s.148 of the Act. Ld. Authorised Representative pointed out that reasons for reopening for all the impugned assessment years were typically worded. That for assessment year 2006-2007 was specifically referred by ld. Authorised Representative. Contention of the ld. Authorised Representative was that the reasons given by the ld. Assessing Officer for resor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erty except for assessment year 2006-2007. According to him, except for assessment year 2006-2007, the rental income from the impugned property was not offered by assessee's husband Shri. V. Anandan. Further, according to him, for assessment year 2010-2011, assessee had not filed a return within the time allowed u/s.139 of the Act. Relying on the judgment of Hon'ble Apex Court in the case of ACIT vs. Rajesh Jhaveri Stock Brokers P. Ltd 291 ITR 500, ld. Departmental Representative submitted that original assessment having been completed u/s.143(1) of the Act, the reopening done for the impugned assessment years were valid. 5. I have considered the rival contentions and perused the orders of the authorities below. Reasons given by the ld. As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereas the Settlor out of love and affection towards his wife - the Settlee herein had decided to settle the ''B '' schedule mentioned property to this settlement deed to and in favour of her absolutely will full powers of alienation etc. And this deed of settlement witnesseth that the above named settler out of his natural love and affection towards the settlee hereby the ''B" schedule mentioned property to this settlement deed in favour of her absolutely. Thus the settlement done by the assessee's husband Shri. V. Anandan in favour of the assessee was for love and affection. It was a clear gift and not a transfer for adequate consideration. At this juncture it will be apposite to reproduce Sec. 27(i) of the Act. ''(i) an individual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said to have reason to believe that an income had escaped assessment. The expression cannot be read to mean that the Assessing Officer should have finally ascertained the fact by legal evidence or conclusion. The function of the Assessing Officer is to administer the statute with solicitude for the public exchequer with an inbuilt idea of fairness to taxpayers. As observed by the Supreme Court in Central Provinces Manganese Ore Co. Ltd. v. ITO [1991] 191 ITR 662, for initiation of action under section 147(a) (as the provision stood at the relevant time) fulfilment of the two requisite conditions in that regard is essential. At that stage, the final outcome of the proceeding is not relevant. In other words, at the initiation stage, what is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s precedent to be satisfied before the Assessing Officer could have jurisdiction to issue notice under section 148 read with section 147(a). But under the substituted section 147 existence of only the first condition suffices. In other words if the Assessing Officer for whatever reason has reason to believe that income has escaped assessment it confers jurisdiction to reopen the assessment. It is, however, to be noted that both the conditions must be fulfilled if the case falls within the ambit of the proviso to section 147. The case at hand is covered by the main provision and not the proviso''. Thus, it is a necessary prerequisite that ingredients of Sec. 147 of the Act have to be fulfilled for initiating proceedings u/s.147 of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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