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| The Tax Publishers2021 TaxPub(DT) 4749 (Jp-Trib) INCOME TAX ACT, 1961
Section 147, Expln. 3
Where assessment was sought to be reopened on the ground that income had escaped assessment on a certain issue and AO held that income as regards which he had initially formed a reason to believe had escaped assessment, had, as a matter of fact, not escaped assessment, it was not open to him to independently assess some other income without issuing a fresh notice under section 148.
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Reassessment - Validity - AO made reassessment on grounds other than those on the basis of which notice was issued under section 148 -
Assessee challenged validity of reassessment framed by AO on the ground of AO having made no additions on issues on which reassessment proceedings were initiated but having made additions in respect of issues in respect of which proceedings were not initiated. Held: Explanation 3 does not and cannot override the necessity of fulfilling the conditions set out in the substantive part of section 147. When assessment was sought to be reopened on the ground that income had escaped assessment on a certain issue and AO held that income as regards which he had initially formed a reason to believe had escaped assessment, had as a matter of fact not escaped assessment, it was not open to him to independently assess some other income without issuing a fresh notice under section 148. Therefore, proceedings imitated under section 147 were quashed as invalid.
Supported by:Bankipur Club Ltd. v. CIT (1971) 82 ITR 831 (SC) : 1971 TaxPub(DT) 386 (SC), CIT v. Ram Singh (2008) 306 ITR 343 (Raj) : 2008 TaxPub(DT) 2035 (Raj-HC) and CIT v. Jet airways (I.) Ltd. (2011) 331 ITR 236 (Bom) : 2011 TaxPub(DT) 0218 (Bom-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12
IN THE ITAT, JAIPUR BENCH
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