TMI Blog2022 (9) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... e of examination of long term capital gain on sale of land was beyond his domain as per section 147 of the Act. A bare perusal of the provisions of section 147 reveals that the jurisdiction of the AO is confined to assess issues on which he has reason to believe that income has escaped assessment and it is only if during the course of assessing these incomes that he is made aware of any other income escaping assessment that he can assess the other such income also. In the facts of the present case the issue raised by the Ld. PCIT being not the subject matter of reassessment nor it being the case of the Revenue that the issue had come to the notice of the AO during reassessment proceedings, the assessing officer could not have conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spect to the provisions of Section 50C of the Act. Meaning thereby that the A.O. had failed to substitute the sale consideration of the property sold by the assessee with its stamp duty value which was higher, applying the provisions of Section 50C of the Act, while computing the capital gain earned by the assessee. Accordingly the assessment order was set aside by the ld. PCIT directing the A.O. to make requisite inquiry and proper verification with respect to the issue. 3. Before us, ld. Counsel for the assessee pointed out that in the impugned case regular assessment u/s. 143 (3) of the Act was not framed and the only assessment order passed was in reassessment proceedings u/s. 147 of the Act which the Ld. PCIT sought to revise. Copy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecorded for reopening and the A.O. therefore having not considered the issue of capital gains earned on sale of land, the order passed by him had been rightly held to be erroneous so as to cause prejudice to the Revenue. 5. We have heard both the parties, and also gone through order of the ld. PCIT and documents and case laws referred before us. Undeniably the assessment order which has been subjected to revisionary proceedings by the ld.Pr.CIT in the present case was passed under section 143(3) read with section 147 of the Act. It is also fact on record, as emanating from the assessment order so passed under section 147 of the Act, that the reassessment proceedings were initiated for assessing income which had escaped assessment relatin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de aware of any other income escaping assessment that he can assess the other such income also. This is evident from the provisions of section 147 which are reproduced as under: 147. If any income chargeable to tax, in the case of an assessee, has escaped assessment for any assessment year, the Assessing Officer may, subject to the provisions of sections 148 to 153, assess or reassess such income or recompute the loss or the depreciation allowance or any other allowance or deduction for such assessment year (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year). . . . . Explanation.-For the purposes of assessment or reassessment or recomputation under this section, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pened the assessment. Ultimately, the assessing officer completed the assessment under section 143(3) r.w.s. 147 of the Act assessing the alleged escaped income of Rs.2,00,50,000/-. Thus, neither the issue relating to non deduction of tax on payment made to contractors and professional fees nor the cash deposit of Rs.31,95,28,429/- in the savings bank account were forming part of reasons recorded. In other words, the reopening of assessment was for the specific purpose of assessing the amount of Rs.2,00,50,000/- . That being the case, it is necessary to examine whether the assessing officer in the re-assessment proceedings could have gone into the aspects raised by learned PCIT. 9. A reading of section 147 of the Act makes it clear tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s contemplated under section 147 of the Act is for the specific purpose of assessing the escaped income. Therefore, in a re- assessment proceeding, the assessing officer can only assess that income which has escaped assessment. The income which is subject matter of assessment in the original assessment proceedings or which was in the domain of the assessing officer in course of original assessment proceedings certainly cannot be considered in the re-assessment proceedings. 8. In the facts of the present case the issue raised by the Ld. PCIT being not the subject matter of reassessment nor it being the case of the Revenue that the issue had come to the notice of the AO during reassessment proceedings, the assessing officer could not have ..... X X X X Extracts X X X X X X X X Extracts X X X X
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