9911796707
TMI Blog2012 (9) TMI 393X X X X Extracts X X X X X X X X Extracts X X X X ..... f assessee X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. On perusal of grounds of appeal in all these appeals, it can be seen that the assessee has disputed a common issue challenging reopening of assessment under section 147 by issue of notice u/s.148 of the I.T.Act, 1961 and rejection of objection for reopening the assessment. 6. As can be seen from the assessment orders for the periods under consideration, the Assessing Officer has noted that the Chief Commissioner of Income Tax (CCIT), Orissa Region, Bhubaneswar vide order dated 2.3.2009 has rejected the application of the assessee for grant of exemption u/s.10(23C)(vi) of the I.T.Act, 1961 and this was communicated to the Assessing Officer stating therein that the assessee does not fulfill the conditions laid down u/s.10(23C)(vi)of the I.T.Act, 1961, wherein, it has shown income over expenditure of Rs.54,82,662 for A.Y. 2008-09 and hence, he has reason to believe that income of Rs.54,82,662 chargeable to tax has escaped assessment. For the assessment year 2006-07, the AO has noted that the assessee has not applied for exemption u/s.10(234C)(vi) of the Act and same was rejected and communicated to the AO but for this year, the assessee has applied exemption under section 10(23C)( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10. Contrary to this, ld D.R. has vehemently argued contending, inter alia, that as can be seen from the assessment orders passed by the AO, it is clear that the AO himself has reason to believe that income of the assessee has escaped assessment for the periods under consideration and hence, he has rightly reopened the assessment. Therefore, there is no infirmity in reopening of assessments made by the AO and consequently, the assessment orders passed in pursuance to reopening are very much valid and enforceable. More so, ld CIT(A) has approved this view of the Assessing Officer. Accordingly, ld D.R. sought for dismissal of the appeals raised by the ssessee. 11. On careful consideration of the orders of the CIT (A) in the light of material made available before the Tribunal as well as rival submissions of both parties, the undisputed facts relating to this issue are that assessee has filed the returns for the periods under consideration and they were processed under section 143(1) of the Act. Later on, the AO has received communication from CCIT communicating the order dated 2.3.2009 stating that the applications of the assessee for claiming exemption under section 10(23C)(vi) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have reason to believe that income has escaped assessment. Therefore, from these materials available on record, it is clear that the AO is persuaded by the communication by the order dated 2.3.2009 of CCIT rejecting the application of the assessee for exemption under section 10(23C)(vi) of the Act for assessment year 2008-09. The Hon'ble Supreme Court in the case of Chhugamal Rajpal vs S.P. Chaliha and Others, 79 ITR 603(SC) held that the communication from the Commissioner cannot form the basis of reason to believe escapement from assessment. The Hon'ble Supreme Court while coming to this conclusion has considered the provisions of section 148 and 151(2) and section 147 & 151. The facts in that case is that whether the assessment is sought to be reopened by the AO and the AO has applied for permission from the Commissioner to reopen the assessment (as was required by the provisions of section). The report of the AO to the Commissioner is that during the year, the assessee has shown to have taken loans from various parties of Calcutta. From the Director of Income Tax (Inv) No.A/P/Misc.(5) D.I./63-64/5623 dated August 13,1965, forwarded to the office under CIT, Bihar and Orissa, Pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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