Majinder Singh Kang v. CIT & Anr.

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The Tax Publishers2012 TaxPub(DT) 2028 (P&H-HC) : (2012) 046 (I) ITCL 0455 : (2012) 344 ITR 0358 INCOME TAX ACT, 1961 --Reassessment--ScopeItems unconnected with escapement for which notice under section 148 was issued--For the relevant assessment year, the return was processed under section 143(1) and thereafter, reassessment proceedings were initiated under section 147 read with section 148 on the ground that income from salary, perquisites and unexplained cash deposits in various accounts along with interest thereon and escaped assessment. On these premises, AO further observed that income on these counts and the income on account of purchases of assets acquired from income beyond the known sources of the assessee were chargeable to tax had escaped assessment under section 147. After visualizing the entire scenario which was supported by documents and otherwise, AO made an addition of certain sum to the taxable income returned by the assessee. Assessee challenged the reassessment order on the ground that AO could not make additions in respect of the income which had not escaped assessment for which no notice had been given to the assessee under section 148 read with section 147. Held: A plain reading of Explanation 3 to section 147 clearly depicts that the AO has power to make additions even on the ground on which reassessment notice might not have been issued in case during the reassessment proceedings, he arrives at a conclusion that some other income has escaped assessment which comes to his notice during the course of proceedings for reassessment under section 148. The provision no where postulates or contemplates that it is only when there is some addition on the ground on which reassessment had been initiated, that the assessing officer can make additions on any other ground on the basis of which income may have escaped assessment. The reassessment proceedings, thus, in the present case could not be held to be vitiated. Income Tax Act, 1961, Section 147 Income Tax Act, 1961, Section 148 Income Tax Act, 1961, Explanation 3 to section 147 IN THE PUNJAB &HARYANA HIGH COURT ADARSH KUMAR GOEL & AJAY KUMAR MITTAL JJ. Majinder Singh Kang v. CIT & Anr. I.T.A. No. 421 of 2010 A.Y. 2001-02 13 September, 2010 Appellantby : Radhika Suri, Advocate, JUDGMENT *Ajay Kumar Mittal J.* This appeal under section 260A of the Income Tax Act, 1961 (for short 'the Act'), has been filed by the assessee against the order dated 11-12-2009, passed by the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar (in short 'the Tribunal'), in I. T. A. No. 343/ASR/2009 in respect of the assessment year 2001-02. 2. The assessee has claimed the following substantial questions of law for determination by this court : '1. Whether, in the facts and circumstances of the case, the order passed by the Hon'ble Income Tax Appellate Tribunal is contrary to the ratio of this Hon'ble Court in CIT v. Atlas Cycle Industries (1989) 180 ITR 319 (P&H) : 1989 TaxPub(DT) 1149 (P&H-HC) and that of the Rajasthan High Court in CIT v. Shri Ram Singh (2008) 306 ITR 343 (Raj) : 2008 TaxPub(DT) 2035 (Raj-HC) ? 2. Whether, in the facts and circumstances of the case, the Tribunal failed to consider that the jurisdiction of the assessing officer ended when no additions were made as per reasons recorded and, thus, Explanation 3 to section 147 was not applicable to the facts of the case ? SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2012 TaxPub(DT) 2028 (P&H-HC) : (2012) 046 (I) ITCL 0455 : (2012) 344 ITR 0358

INCOME TAX ACT, 1961

--Reassessment--ScopeItems unconnected with escapement for which notice under section 148 was issued--For the relevant assessment year, the return was processed under section 143(1) and thereafter, reassessment proceedings were initiated under section 147 read with section 148 on the ground that income from salary, perquisites and unexplained cash deposits in various accounts along with interest thereon and escaped assessment. On these premises, AO further observed that income on these counts and the income on account of purchases of assets acquired from income beyond the known sources of the assessee were chargeable to tax had escaped assessment under section 147. After visualizing the entire scenario which was supported by documents and otherwise, AO made an addition of certain sum to the taxable income returned by the assessee. Assessee challenged the reassessment order on the ground that AO could not make additions in respect of the income which had not escaped assessment for which no notice had been given to the assessee under section 148 read with section 147. Held: A plain reading of Explanation 3 to section 147 clearly depicts that the AO has power to make additions even on the ground on which reassessment notice might not have been issued in case during the reassessment proceedings, he arrives at a conclusion that some other income has escaped assessment which comes to his notice during the course of proceedings for reassessment under section 148. The provision no where postulates or contemplates that it is only when there is some addition on the ground on which reassessment had been initiated, that the assessing officer can make additions on any other ground on the basis of which income may have escaped assessment. The reassessment proceedings, thus, in the present case could not be held to be vitiated.

Income Tax Act, 1961, Section 147

Income Tax Act, 1961, Section 148

Income Tax Act, 1961, Explanation 3 to section 147

IN THE PUNJAB &HARYANA HIGH COURT

ADARSH KUMAR GOEL & AJAY KUMAR MITTAL JJ.

Majinder Singh Kang v. CIT & Anr.

I.T.A. No. 421 of 2010

A.Y. 2001-02

13 September, 2010

Appellantby : Radhika Suri, Advocate,

JUDGMENT

Ajay Kumar Mittal J.

This appeal under section 260A of the Income Tax Act, 1961 (for short 'the Act'), has been filed by the assessee against the order dated 11-12-2009, passed by the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar (in short 'the Tribunal'), in I. T. A. No. 343/ASR/2009 in respect of the assessment year 2001-02.

2. The assessee has claimed the following substantial questions of law for determination by this court :

'1. Whether, in the facts and circumstances of the case, the order passed by the Hon'ble Income Tax Appellate Tribunal is contrary to the ratio of this Hon'ble Court in CIT v. Atlas Cycle Industries (1989) 180 ITR 319 (P&H) : 1989 TaxPub(DT) 1149 (P&H-HC) and that of the Rajasthan High Court in CIT v. Shri Ram Singh (2008) 306 ITR 343 (Raj) : 2008 TaxPub(DT) 2035 (Raj-HC) ?

2. Whether, in the facts and circumstances of the case, the Tribunal failed to consider that the jurisdiction of the assessing officer ended when no additions were made as per reasons recorded and, thus, Explanation 3 to section 147 was not applicable to the facts of the case ?