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TMI Blog2012 (6) TMI 616X X X X Extracts X X X X X X X X Extracts X X X X ..... rt : "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 and that of the Rajasthan High Court in CIT v. Shri Ram Singh [2008] 306 ITR 343 (Raj) ? 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 ? 3. Whether, in the facts and circumstances of the case, the Tribunal could take a view contrary to its own dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accommodation for which the corporation paid monthly rent of Rs. 25,000 and, thus, a total sum of Rs. 3 lakhs was to be treated as per- quisite of the assessee. The Assessing Officer after critically investigating and examining the matter came to conclude that he had the reason to believe that income chargeable to tax amounting to Rs. 1,41,27,702 had escaped assessment within the meaning of section 147 of the Act. It was noticed by the Assessing Officer that the assessee was also partner in various firms. The salary received by him from those firms and the interest accruing thereon would be chargeable to tax. On these premises, the Assessing Officer further observed that income on these counts and the income on account of purchases of asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Punjab and Haryana High Court in the case of Vipan Khanna v. CIT [2002] 255 ITR 220 is squarely applicable to the facts of the case. In the case of Vipan Khanna v. CIT [2002] 255 ITR 220, their Lordship had adjudicated that the Assessing Officer was precluded from seeking general infor- mation on other issues, which could only be done by issuing a notice under section 143(2) within the stipulated period. The Assessing Officer is of the view that the facts of the case relied upon by the learned counsel for the appellant are different from the appellant's case, but it is not so. In view of the decision of the jurisdictional High Court in the case of Vipan Khanna v. CIT [2002] 255 ITR 220 and by respectfully following the same, the reassessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting the case on the merits and the case of Vipan Khanna [2002] 255 ITR 220 (P&H) did not advance the case of the assessee. In order to appre- ciate the issues raised herein, it is worthwhile to incorporate as what was held by the Tribunal, in a nut-shell : "Thus, it is evident from the above discussions that the present case had been decided by the Commissioner of Income-tax (Appeals) only on legal grounds and not on the merits. The remand report of the Assessing Officer has not been considered by the Commissioner of Income-tax (Appeals) though officers of the Department were present at the time of proceedings before the Commissioner of Income-tax (Appeals). Natural justice demands that the submissions made by the parties must be c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asis of which reassessment had been initiated. According to the learned counsel, no reassessment order could be passed by the Assessing Officer. Learned counsel for the assessee relied upon the following obser- vations made by this court in CIT v. Atlas Cycle Industries [1989] 180 ITR 319 (page 322) : ". . . we are of the view that the Tribunal was right in cancelling the reassessment as both the grounds on which reassessment notice was issued were not found to exist, and the moment such is the posi- tion, the Income-tax Officer does not get the jurisdiction to make a reassessment." 9. Support was also drawn from the decision of the Rajasthan High Court in CIT v. Shri Ram Singh [2008] 306 ITR 343 (Ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted, 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 cannot be held to be vitiated. 13. Referring to the judgment of this court in Atlas Cycle Industries' case [1989] 180 ITR 319 (P&H) and the Rajasthan High Court in Shri Ram Singh's case [2008] 306 ITR 343, it may be noticed that these were the judgments rendered by the courts prior to the insertion of Explanation 3 to section 147 of the Act. In view of the insertion of Explanation 3 to section 147 by the Finance (No. 2) Act, 2009, with effect from April 1, 1989, the aforesaid judgments do not advance the case of the assessee any longer. 14. Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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