INCOME TAX ACT, 1961

Section 147

Reassessment - Validity - Receipt towards land development -

AO invoked his section 148/147 jurisdiction for the reason that the survey exercise dated 20-7-2007 had witnessed impugned receipt towards land development in assessee's credit side without carrying out any development works since involving as bogus invoices only. Assessee contended that ITAT, in its first round order, had admittedly reversed said twin reasoning, holding that neither of them could be assessed as assessee's income.Held: Merely because AO had added concerned receipts as income from 'Other' sources or CIT(A) as business income, did not make any difference at all. This was more particularly for the reason that assessee had already succeeded qua assessment of the very sum as income in the first round as set aside in section 254 proceedings. Accordingly, once impugned reopening mechanism based on this twin reasoning itself was decided against the department on merits, there was no reason left to support the impugned reopening since its very foundation has no legs to stand. Therefore, reopening was quashed.

Followed:Joginder Singh v. ITO ITA No. 222/Ars/2014, dated 11-6-2015 : 2016 TaxPub(DT) 117 (Asr-Trib) and GKN Driveshafts India Ltd. v. ITO (2003) 259 ITR 19 (SC) : 2003 TaxPub(DT) 734 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2007-08 & 2008-09

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