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TMI Blog2012 (7) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... order made u/s 143(3) r.w.s. 147(a), no addition was made on account of undisclosed investment in the purchase of immovable property and the disallowance of bad debts originally allowed to the assessee was stated. Thus, when the reasons on which reassessment proceedings were initiated were not found to exist the assumption of jurisdiction under Section 148 r.w.s.147 becomes invalid and consequently, the reassessment order passed in pursuance thereto also becomes invalid. CIT Versus Jet Airways (I) Ltd. [2010 (4) TMI 431 (HC)] clearly states that if after issuing a notice u/s.148 AO accepts the contention of the assessee and holds that the income which he has initially formed a reason to believe had escaped assessment, which has as a mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 98 ITR 297, when the proceedings under Section 147 are initiated, the same is open on items of under assessment. And also held that the proceedings under Section 147 cannot be for the benefit of assessee but for the benefit of revenue only. It is in this context, the Supreme Court restricted the scope of reassessment under Section 147 and not otherwise. 2.4 The learned Commissioner of Income Tax(Appeals) erred in coming to the conclusion that an issue on which reasons are not specifically recorded at the time of reopening of assessment, the said issue cannot be considered at all during the course of completing the reassessment proceedings. The Commissioner of Income Tax(Appeals) failed to note that this will virtually defeat the very purp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessment Year 2004-05, the above mentioned assessee has transferred an immovable property through a sale deed to one Shri A T Krishnakumar, son of later A R Thigarajan, residing at No.1 C Eldams Road, Alwarpet, Chennai 18 for a consideration of ₹ 1,03,00,000/- for which the stamp valuation authority had fixed the value at ₹ 1,24,10,050/- at which the purchaser Shri A T Krishnakumar had paid the actual stamp duty without any dispute. The PAN number given by shri A T Krishnakumar did not tally with the PAN querry of the computer system. Therefore the Assessing Officer after recording in the order sheet on 23.01.08, as follows issued notice under Section 148 as under:- Pl. see letter dt.1.1.08 from Addl C.I.T Sal. Range II in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y at the stage of issue of notice under Section 148 and is an essential condition to vest jurisdiction to re-open the assessment. 3. P V Doshi V. C.I.t (1978) 113 ITR 22 (Guj.) the conditions laid down for the reasonable belief to be reached by the ITO under sub-clause(a) or under subclause( b) and his recording of the reasons under Section 148(2), and for the sanction before issuing the said notice under Section 148 by the high authorities under Section 151 are mandatory conditions The other contention of the assessee was that if no additions are made on the reasons on which the assessment is reopened, then the Assessing Officer has no jurisdiction to assess any other income. For this he relied on the decisions of the Hon ble Bomba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2011 order dated 23.11.11 and submitted that on the same issue, the Tribunal had confirmed the order of the Commissioner of Income Tax(Appeals) annulling the reassessment made by the Assessing Officer and dismissed the appeal of revenue. Therefore, following the same, the appeal of the assessee is to be allowed. 8. We have heard both the parties and perused the orders of lower authorities and materials available on record. In the instant case, the Assessing Officer issued notice under Section 148 of the Act on the ground that the assessee had purchased an immovable property from Shri M E Duraiswamy for a consideration of ₹ 1,03,00,000/- for which the stamp valuation authority had fixed the value at ₹ 1,24,10,050/-which was ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the proceedings. Parliament having used the words assess or reassess such income and also any other income chargeable to tax which has escaped assessment , the words and also cannot be read as being in the alternative. On the contrary, the correct interpretation would be to regard those words as being conjunctive and cumulative. It is of some significance that Parliament has not used the word or . The Legislature did not rest content by merely using the word and . The words and as well as also have been used together and in conjunction. Evidently, what Parliament intends by use of the words and also is that the Assessing Officer, upon the formation of a reason to believe under section 147 and the issuance of a notice u/s.148(2) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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