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TMI Blog2012 (7) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... y quashed - Decided in favor of assessee. - ITA No.5441/Del/2011 - - - Dated:- 31-5-2012 - SMT. DIVA SINGH, SHRI A.N. PAHUJA, JJ. Assessee by Shri Venketesh Mohan, AR Revenue by Shri Pradeep Kumar Meel, DR O R D E R A.N.Pahuja:- This appeal filed on 05.12.2011 by the Revenue against an order dated 15.09.2011 of the ld. CIT(A)-VII, New Delhi, raises the following grounds:- 1. The order of the learned CIT(A) is erroneous and contrary to facts and law. 2. On the facts and in the circumstances of the case, the learned CIT(A) erred in holding that the Assessing Officer ceases to have jurisdiction over reassessment proceedings once the income alleged to have escaped assessment recorded in the reasons was not fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been admitted by us, we feel it proper to set aside the issue the file of learned CIT(A) with the direction to examine the legal issue whether assumption of jurisdiction u/s 147 of the Act was justified in view of the fact that no addition has been made in respect of amount and income escaping assessment for which the assessment was reopened. The learned CIT(A) will examine the case of the assessee and pass a speaking order in respect of assumption of jurisdiction u/s 147 of the Act. Since we have set aside the issue relating to assumption of jurisdiction u/s 147, the addition made on merit also set aside to the file of CIT(A) to be decided afresh. 3. In terms of aforesaid directions of the ITAT, the assessee filed detailed written su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was held as under:- 18. We are in complete agreement with the reasoning of the Division Bench of Bombay High Court in the case of V. Jaganmohan Rao (supra). We may also note that the heading of section 147 is income escaping assessment and that of szection 148 issue of notice where income escaped assessment . Section 148 is supplementary and complimentary to section 147. Sub-section (2) of section 148 mandates reasons for issuance of notice by the Assessing Officer and sub-section (1) thereof mandates service of notice to the assessee before the Assessing Officer proceeds to assess, reassess or recomputed escaped income. Section 147 mandates recording of reasons to believe by the Assessing Officer that the income chargeable to tax h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e not making additions on those items of club fees, gifts and presents, etc. proceeded to make deductions u/s 80HH and 80-I and accordingly reduced the claim on these accounts. 20. The very basis of intimation of proceedings for which reasons to believe were recorded were income escaping assessment in respect of items of club fees, gifts and presents, etc., but the same having not been done, the Assessing Officer proceeded to reduce the claim of deduction u/s 80HH and 80-I which as per our discussion was not permissible. Had the Assessing Officer proceeded not to make disallowance in respect of the items of club fees, gifts and presents, etc., then in view of our discussion as above, he would have been justified as per Explanation 3 to re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vances to following companies for purchase of land at NOIDA. S.No. Name of company Amount [In Rs. ] 1. JPC Mercantile Pvt. Ltd. 43,45,000/- 2. JPC Info System Pvt. Ltd. 43,50,000/- 3. JPC Apparels Pvt. Ltd. 44,75,000/- 1,31,75,000/- On verification, it is found that investment of Rs.1,31,75,000/- has not been reflected by the assessee in his return for the assessment year 2004-05. I have reason to believe that income of Rs.1,31,75,000/- chargeable to tax has escaped assessment for the assessment year 2004-05. Issue notice u/s 148 for the assessment year 2004-05. 3.3 However, during the reassessment proceedings, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, the AO did not make any addition on the issue, which formed the basis for reopening the assessment, in his reassessment order. In these circumstances, the ld. CIT(A) relied upon the decision of Hon ble jurisdictional High Court in Ranbaxy Laboratories Ltd.(supra) and quashed the reassessment order. Earlier the Hon ble Bombay High Court in CIT versus Jet Airways India Limited, (2011) 331 ITR 236 (Bom.) held as under: .Section 147 has this effect that the Assessing Officer has to assess or reassess the income ("such income") which escaped assessment and which was the basis of the formation of belief and if he does so, he can also assess or reassess any other income which has escaped assessment and which comes to his notice during ..... X X X X Extracts X X X X X X X X Extracts X X X X
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