TMI Blog2020 (2) TMI 1305X X X X Extracts X X X X X X X X Extracts X X X X ..... t to have been conducted in the hands of the recipient to justify the source of the loans received and not the payer of the loan, who has given loan out of her regular books of account. It is clear that the reasons recorded by the AO for initiating reassessment proceedings are invalid and do not justify initiation of re-assessment. Existence of reasons for escapement of income are sine qua non to embark upon the assessment or reassessment u/s 147 - Change or no change of opinion, as argued by the DR, are the factors to be considered after fulfilling the jurisdictional condition of there being an escapement of income, in the absence of which no assessment or reassessment can be made u/s 147. As it is apparent from the above discussion tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct and also made several submissions. After considering various submissions of the assessee, the Assessing Officer (AO) completed the assessment by making various additions in para 7 of in its order. 3. The CIT(A) upheld the order of AO. 4. Aggrieved with the said decision of CIT(A) in the year under consideration, the assessee is in appeal before the Tribunal. 5. Before us, at the very outset the ld. Counsel submitted the case under consideration is covered on the legal aspects of the litigation. Relying on the Hon ble jurisdictional High Court judgment in the case of CIT Vs. Jet Airways (I) Ltd. (2011) 331 ITR 236 (Bom) and Co-ordinate Bench of Pune Tribunal in the case of Mr. Kailash Kanhaiyalal Gidwani Ors. Vs. ACIT (group ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... off u/s. 288A: ₹ 1,67,55,520 6. None of the above referred additions emanates from the reasons recorded vide page 9 of the Paper Book. Further, he submitted in such factual situation i.e. where the AO has not made any addition on account of reasons recorded, other additions made by the AO are not sustainable in law, in view of the language of section 147 of the Act. The relevant lines of section 147 of the Act are extracted as under:- 147. If the Assessing Officer has reason to believe that income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153 assess or re-assess such income and also any other income chargea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, not correct to that extent. Be that as it may, the substance of the reasons is that the sources of the loans advanced by Sou. Devi Gidwani are not substantiated . This is the main reason which led to the initiation of re-assessment proceedings in the hands of the assessee. We are unable to find any justification for initiation of re-assessment on such ground as it is a case where the assessee had made repayment of loan out of regular books of account maintained by her. As against the opening balance of ₹ 20.00 lakh, the assessee paid ₹ 2.00 lakh vide cheque dated 25-11-2008. This transaction was properly recorded in the assessee s books of account. The assessee is payer and not the recipient of loan. Once the assessee paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n be made u/s 147. As it is apparent from the above discussion that no valid reasons exist about the escapement of the assessee s income, we hold that the AO was not justified in taking recourse to the provisions of section 147 of the Act. We, therefore, strike down the initiation of assessment proceedings and the consequential assessment order passed u/s 147 of the Act and also the impugned order. 9. From the above, it is evident that the Tribunal granted relief to the assessee on the similar facts and law. Considering the settled nature of the issue, we are of the opinion that the AO was not justified in taking recourse to the provisions of section 147 of the Act. We, therefore, strike down the initiation of assessment proceedings and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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