| The Tax Publishers2019 TaxPub(DT) 1552 (Chen-Trib) INCOME TAX ACT, 1961
Section 147, Expln. 3
If, notice for reopening of the assessment was issued on one aspect, and in the course of reassessment proceedings another aspect was discovered, the reassessment order would be valid, only if, the aspect, which led to reopening of assessment, continues to form part of reassessed income.
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Reassessment - Validity - Issuance of section 148 notice on one aspect and framing of reassessment on another aspect -
AO made addition while framing reassessment as regards item of income not mentioned in notice issued under sections 148, whereas no addition whatsoever was made for the reason cited in section 148 notice.Held: The expression 'and also brings to tax' as appearing in Explanation 3 to section 147 clearly expounds that if notice for reopening of assessment was issued on one aspect, and in the course of reassessment proceeding another aspect was discovered, the reassessment order would be valid, only if, the aspect, which led to reopening of assessment,continues to form part of reassessed income. It is not open to AO to independently assess some other income. If he intends to do so, a fresh notice under section 148 would be necessary, the legality of which would be tested in the event of a challenge by the assessee. Accordingly, reassessment done in the instant case did not stand the test of the law and such reassessment was set aside.
Relied:CIT v. Jet Airways (I) Ltd. (2011) 331 ITR 236 (Bom) : 2011 TaxPub(DT) 218 (Bom-HC), CIT v. Mohmed Juned Dadani (2013) 355 ITR 172 (Guj) : 2013 TaxPub(DT) 967 (Guj-HC) : Manu/GJ/0061/2013 ; and and Oriental Bank of Commerce v. Addl. CIT Manu/DE/1935/2014.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12
IN THE ITAT, CHENNAI BENCH
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