TMI Blog2017 (9) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... the course of reassessment proceedings. In AY 2009-10, again similar position exist wherein no disallowance has been made u/s section 40A(3) which form the basis for reopening of the assessment. The AO has however, brought to tax unexplained cash creditors amounting to ₹ 10 lacs and expenses worth ₹ 1.05 lacs have been disallowed towards various expenses which apparently come to his notice during the course of reassessment proceedings. Thus the very foundation of the proceedings u/s 147 are vitiated and accordingly, we are setting aside the order passed by the AO u/s 147 for both the years under consideration. - Decided in favour of assessee. - ITA No. 207/JP/16 And ITA No. 208/JP/16 - - - Dated:- 1-9-2017 - SHRI KUL BHAR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch reads as under:- In this case as per information received by this office from the ADIT(Inv.)-II, Jaipur s letter no. 1495 dated 03.03.2011 which reveals that the assessee firm has made substantial transactions including cash deposits withdrawals during the asst. year under consideration. Apart from this it is also noticed that assessee has made following payments in cash which is contravention to section 40A(3) of the I.T. Act. Period of Transaction Amount of Transaction F.Y. 2007-08 ₹ 53,26,090/- Thus, income on a/c of disallowance to be made u/s 40(A)(3) of the IT Act has escaped assessment. I have therefore reasons that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rse of the proceedings under the section as having escaped assessment. 8. In support, the ld. AR placed reliance on the following decisions:- CIT vs. Mohmed Juned Dadani (2014)355 ITR 172 (Guj.) HC) Oriental Bank of Commerce Vs. Addl. CIT (2014) 109 DTR 1(Del.) (HC) ACIT vs. Major Deepak Mehta (2012) 344 ITR 641 ( CHHATTISGARD) (HC) CIT vs. Jet Airways (I) Ltd. (2011)331 ITR 236 (Bom.) (HC) CIT vs. Adhunik Niryat Ispat Ltd. (2011) 63 DTR 0212 (Del.) (HC) Ranbaxy Laboratories Ltd. vs. CIT (2011) 336 ITR 0136 (Del.) (HC) 9. The ld DR is heard who has vehemently argued the matter and relied on the order of the lower authorities. 10. We have heard the rival submissions and purused the material available on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interpretation would be to regard those words as being conjunctive and cumulative. It is of some significance that Parliament has not used the word or . The Legislature did not rest content by merely using the word and . The words and , as well as also have been used together and in conjunction. The Shorter Oxford Dictionary defines the expression also to mean 'further, in addition, besides, too'. The word has been treated as being relative and conjunctive. Evidently, therefore, what Parliament intends by use of the words and also is that the Assessing Officer, upon the formation of a reason to believe under section 147 and the issuance of a notice under section 148(2) must assess or reassess: (i) 'such income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer has to assess or reassess the income which he had reason to believe had escaped assessment and also any other income chargeable to tax which came to his notice during the proceedings. In the absence of the assessment or reassessment of the former, he cannot independently assess the latter. 14. The second line of precedent is reflected in a judgment of the Rajasthan High Court in CIT v. Shri Ram Singh [ 2008] 306 ITR 343 . The Rajasthan High Court construed the words used by Parliament in section 147 particularly the words that the Assessing Officer 'may 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... avention to section 40A(3) of the I.T. Act which has escaped disallowance and thus has escaped assessment in the original assessment proceedings completed u/s 143(3) of the Act. On perusal of the reassessment order passed under 147 read with section 143(3) of the Act, it is noted that in AY 2008-09, no disallowance has been made u/s section 40A(3) which form the basis for reopening of the assessment. The AO has however, brought to tax unexplained cash creditors amounting to ₹ 10 lacs which has apparently come to his notice during the course of reassessment proceedings. In AY 2009-10, again similar position exist wherein no disallowance has been made u/s section 40A(3) which form the basis for reopening of the assessment. The AO has ho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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