TMI Blog2018 (7) TMI 1898X X X X Extracts X X X X X X X X Extracts X X X X ..... n taken note of by the AO before issuing notice u/s 148 is non-existent and, resultantly, there is no question of making any other addition. The reopening was made on the ground that the opening balance as on 01/04/2004, was not explained. While so, no addition was made on this count. The ‘SMC’ Delhi Bench of the Tribunal in the case of M/s. Pragati Finsec Ltd. vs. ITO, [2018 (6) TMI 1574 - ITAT DELHI] relying on the judgment of CIT vs. Chiel Communications Pvt. Ltd. [2013 (5) TMI 417 - DELHI HIGH COURT] and the judgment of CIT vs. Jet Airways Ltd. [2010 (4) TMI 431 - HIGH COURT OF BOMBAY] - decided in favour of assessee - ITA No. 2395/Kol/2017 - - - Dated:- 25-7-2018 - Sri J. Sudhakar Reddy, Accountant Member For the Appellant : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levant to the Assessment Year 2005-06 and hence the Assessing Officer has reason to believe that income had escaped assessment. While so, in the order passed u/s 144(1) r.w.s. 147 of the Act, the Assessing Officer made addition of ₹ 15 Lakhs/- based on difference between the original balance sheet and the revised balance sheet both dt. 31/03/2004 but has not made any addition on account of unexplained opening balance. The assessee claimed that he was advised to invest in mutual funds for higher returns and for that purpose, he had borrowed money from friends and relatives amounting to ₹ 15,21,680/-. As the transaction was not properly reflected by the accountant initially and hence the same was corrected and the corrected bal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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. A bare perusal of the above provision manifests that the AO is fully empowered to bring to tax any other income which has escaped assessment and which comes to his notice subsequently in the course of proceedings u/s 147, apart from the income escaping assessment on which the AO formed reason to believe about the escapement of income and ITA NO. 634/Del/2018 issued notice u/s 148. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... escaped assessment and come to his notice subsequently in the course of proceedings u/s 147. The Honble jurisdictional High Court in CIT vs. Chiel Communications India Pvt. Ltd. (2013) 354 ITR 549 (Del) and CIT VS. Adhunik Niryat Ispat Ltd. (2011) 63 DTR 0212 (Del) has held to this extent. Similar view has been taken by the Honble Bombay High Court in CIT vs. Jet Airways (I) Ltd. (2011) 331 ITR 236 (Bom). When I test the facts of the instant case on the touchstone of the principle as discussed hereinabove, it turns out that the solitary reason taken note of by the AO before issuing notice u/s 148 is non-existent and, resultantly, there is no question of making any other addition. I, therefore, set aside the assessment order passed by the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X
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