TMI Blog2022 (9) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... ided in favour of assessee. - ITA No. 1465/Del/2020 - - - Dated:- 3-8-2022 - Sh. Saktijit Dey, Judicial Member And Dr. B. R. R. Kumar, Accountant Member Assessee by : Sh. Lalit Mohan, CA Ms. Monika Agarwal, Adv. Revenue by : Ms. Indu Bala Saini, Sr. DR ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the assessee against the order of ld. CIT(A), Rohtak, dated 13.02.2020. 2. Following grounds have been raised by the assessee: 1. That both the initiation of proceedings under section 147 of the Act and, completion of assessment under section 147/143(3) of the Act were without jurisdiction and hence deserve to be quashed as such. 1.1 That since there was no specific relevant, reliable and tangible material on Jurisdictional ground therefore not considered separately record to form a reason to believe that income of the appellant had escaped assessment and in view thereof the proceedings initiated are illegal u/s 147 of the Act, untenable and therefore unsustainable. 1.2 That reasons were recorded mechanically without application of mind and therefore do not constitute valid reason to believ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Income Tax (Appeals) has erred both in law and on facts in sustaining a disallowance of Rs. 31,50,480/- out of plot boundary expenses incurred by the appellant company. 5. That the learned Commissioner of Income Tax (Appeals) has also erred both in law and on facts in sustaining a disallowance of Rs. 13,18,835/- out of aggregate expenditure of Rs. 26,37,670/- under the head Sewerage and Water Pipe Expenses. 6. That the learned Commissioner of Income Tax (Appeals) has erred both in law and on facts in sustaining a disallowance of Rs. 4,23,750/- being 50% of the expenditure incurred of Rs. 8,47,500/- under the head brokerage expenses'. 7. That the learned Commissioner of Income Tax (Appeals) has also erred both in law and on facts in upholding addition of Rs. 1,79,735/- out of opening balance of capital declared in the balance sheet filed alongwith the return of income for the instant assessment year. 8. That the learned Commissioner of Income Tax (Appeals) has failed to appreciate that the disallowances made and sustained relating to expenses claimed by the appellant in the return of income are without jurisdiction and untenable as they are beyond th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urces. Accordingly income to the extent of Rs. 1,63,85,000/- and any other income which subsequently comes to the notice of the undersigned has escaped assessment within the meaning of section 147 of the I.T. Act, 1961. Issue notice u/s 148 of the I.T. Act, 1961 for the assessment year 201314. 4. Thus, the assessment proceedings were initiated by issuing notice u/s 148 of the Act. 5. During the assessment proceedings, the assessee was asked vide letter F.No. ITO/W-2/NNL/2016/2016-17/1029 dated 21.12.2016 to explain the source of capital introduced during the year under consideration and was show caused as to why an amount of Rs.23,79,835/- of capital introduced during the year should not be added to the income of the assessee for F.Y. 2012-13. 6. On receiving the reply from the assessee, that the capital introduced during the year was out of the gift received from his father, the Assessing Officer held that the assessee has failed to submit any supporting document which prove that the capital taken as opening balance during the F.Y. 2012-13 amounting to Rs.23,79,835/-. The AO held that the assessee has not furnished any copy of Gift Deed regarding gift given by hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... INCOME-TAX Vs. JET AIRWAYS (I.) LTD. DR. D. Y. CHANDRACHUD and J. P. DEVADHAR JJ. April 12, 2010. Section(s): Income-tax Act, 1961, s. 147 Assessment Year: 1994-95 ,1995-96 RE-ASSESSMENT - SCOPE OF POWER OF ASSESSING OFFICER - LAW APPLICABLE - EFFECT OF AMENDMENT OF SECTION 147 W.E.F. 1-4-1989 - ASSESSING OFFICER CAN ALSO ASSESS OTHER INCOMES NOT REFERRED TO IN NOTICE OF REASSESSMENT - POWER TO ASSESS SUCH OTHER INCOME ONLY IF INCOME REFERRED TO IN NOTICE OF REASSESSMENT HAS BEEN ASSESSED - INCOME-TAX ACT, 1961, s. 147 Explanation 3 to section 147 of the Income-tax Act, 1961, was inserted by the Finance (No. 2) Act of 2009, with effect from April 1, 1989. The effect of the Explanation is that even though the notice that has been issued under section 148 containing the reasons for re-opening the assessment does not contain a reference to a particular issue with reference to which income has escaped assessment, the Assessing Officer may assess or reassess the income in respect of any issue which has escaped assessment, when such issue comes to his notice subsequently in the course of the proceedings. Parliament having used the words assess or reassess such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection (1) of section 148 ; (Hi) the Assessing Officer may assess or reassess such income, which he has reason to believe, has escaped assessment 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 the section ; and (iv) though the notice under section 148(2) does not include a particular issue with respect to which income has escaped assessment, he may none the less, assess or reassess the income in respect of any issue which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under the section. 2. [2011] 336 ITR 136 (Del) (Del) [IN THE DELHI HIGH COURT] RANBAXY LABORATORIES LTD. Vs. COMMISSIONER OF INCOME-TAX A. K. SIKRI and M. L. MEHTA JJ. June 3, 2011. Section(s): Income-tax Act, 1961, ss. 147,148 RE-ASSESSMENT - ITEMS OF INCOME SAID TO HAVE ESCAPED ASSESSMENT ON WHICH REASSESSMENT PROPOSED NOT ADDED BUT OTHER DEDUCTIONS REDUCED -NOT PERMISSIBLE -INCOME-TAX ACT, 1961, ss. 147, 148 The assessee-company was engaged in the business of manufacture and trading of pharmaceuticals products. The Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee regarding the items of club fees, gifts and presents and provision for leave encashment, but during the assessment proceedings, he found the deduction under sections 80HH and 80-1 as claimed by the assessee to be not admissible. He consequently proceeded to make deductions under sections 80HH and 80-1 and accordingly reduced the claim on these accounts. The very basis of initiation of proceedings for which reasons to believe were recorded was income escaping assessment in respect of items of club fees, gifts and presents, etc., but while these items were not disturbed, the Assessing Officer proceeded to reduce the claim of deduction under sections 80HH and 80-1 which was not permissible. The Tribunal was right in holding that the Assessing Officer had the jurisdiction to reassess issues other than the issues in respect of which proceedings were initiated but he was not justified when the reasons for the initiation of those proceedings ceased to survive. 3. [2018] 99 taxmann.com 311 (Bom.) HIGH COURT OF BOMBAY Pr. Commissioner of Income-tax-1 v. Lark Chemicals (P.) Ltd. M.S. SANKLECHA AND SANDEEP K. SHINDE JJ. IT APPEAL NO. 1083 OF 2015 FEBRUARY 28, 2018 OR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner of Income-tax Vs. Lark Chemicals (P.) Ltd. ROHINTON FALI NARIMAN AND NAVIN SINHA, JJ. SPECIAL LEAVE PETITION (CIVIL) DIARY NO. 34183 OF 2018 OCTOBER 5, 2018 Section 143, read with section 147 of the Income-tax Act, 1961 - Assessment - Additions to income (Reassessment) - Assessment year 2004-05 - In course of appellate proceedings, Tribunal noticed that order passed consequent to reassessment, had not confirmed addition attributable to reasonable belief of Assessing Officer while issuing reopening notice - Tribunal thus set aside reassessment order - High Court upheld Tribunal's order - Whether, on facts, SLP filed against decision of High Court was to be dismissed - Held, yes [Para 2] 13. Since, no addition has been made on the reasons recorded and since the additions made have no relation with the reasons recorded while reopening the case and cannot be attributable to the reasons recorded, respectfully following the order of the Hon ble Apex Court, we hold that the Assessing Officer had deficiency of jurisdiction in assessing any other income unrelated to the reasons recorded and owing to the facts of the instant case, the Explanation 3 to Section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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