9911796707
TMI Blog2013 (5) TMI 559X X X X Extracts X X X X X X X X Extracts X X X X ..... any valid reason." 3. We have heard rival submissions and gone through facts and circumstances of the case. Brief facts are that assessee filed her return of income for relevant assessment years 2005-06 and 2006-07 on 13.03.2006 and 31.03.2008 respectively. In both the year, returns of income were processed u/s. 143(1) of the Act. The AO received the complaint/information that the assessee did not disclose correct income from her proprietary concern namely, M/s. Saajo and the reasons recorded by AO and as supplied vide his letter no. OT Wd 41(1)/Kol/147/2010- 11/22 dated 20.04.2010, reads as under: "Reasons for re opening the assessments for above mentioned A.Ys 2005-06 &2006-07 are as follows:- In this case some information was received from a tax evasion petition. Main allegation was that the assessee understated / concealed her income, particuiarly did not disclose correct income from her proprietary concern SAAJO a beauty parlour. On basis of the TEP enquiry was conducted and income tax records were scrutinized. The assessee did not file any Income Expenditure or profit and loss account of SAAJO in the returns of income for AY 05-06 & 06-07. She has shown income from this pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o.1 is dismissed." Aggrieved, now assessee is in appeal before us. 5. We find that it is not under dispute that the assessee has not filed Balance Sheet and P&L Account of M/s. Saajo a proprietary concern run by the assessee along with original return of income and also turnover of Savoy Imaging System i.e. by filing Trading and P&L Account and Balance for relevant assessment years 2005-06 and 2006-07. Ld. Counsel for assessee drew our attention to the assessment orders for both years and argued that none of the charges raised in reasons recorded are the basis of assessment rather altogether just estimated disallowance on account of expenditure like electricity charges, travelling expenses, advertisement expenses, telephone charges, motor car expenses, repair and maintenance were disallowed by assessee by making ad hoc disallowances. In such circumstances, the very basis of reopening is illegal and invalid. For this, he relied on the decision of Hon'ble Bombay High Court in the case of CIT Vs. Jet Airways (I) Ltd. (201) 331 ITR 236 (Bom.) and also the decision of Hon'ble Delhi High Court in the case of Ranbaxy Laboratories Ltd. Vs. CIT (2011) 336 ITR 136 (Del.), wherein Hon'ble D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of any other income which comes to his notice subsequently during the course of the proceedings as having escaped assessment. If the income, the escapement of which was the basis of the formation of the reason to believe is not assessed or reassessed, it would not be open to the Assessing Officer to independently assess only that income which comes to his notice subsequently in the course of the proceedings under the section as having escaped assessment. If upon the issuance of a notice under section 148(2), the Assessing Officer accepts the objections of the assessee and does not assess or reassess the income which was the basis of the notice, it would not be open to him to assess income under some other issue independently. Parliament when it enacted the provisions of section 147 with effect from April 1, 1989 clearly stipulated that the Assessing Officer has to assess or reassess the income which he had reason to believe had escaped assessment and also any other income chargeable to tax which came to his notice during the proceedings. In the absence of the assessment or reassessment the former, he cannot independently assess the latter . . . Section 147 has this eff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basis of which he assumed jurisdiction. For every new issue coming before the Assessing Officer during the course of proceedings of assessment or reassessment of escaped income, and which he intends to take into account, he would be required to issue a fresh notice under section 148. In the present case, as is noted above, the Assessing Officer was satisfied with the justifications given by the assessee regarding the items, viz., club fees, gifts and presents and provision for leave encashment, but, however, during the assessment proceedings, he found the deduction under sections 80HH and 80-I as claimed by the assessee to be not admissible. He consequently while not making additions on those items of club fees, gifts and presents, etc., proceeded to make deductions under sections 80HH and 80-I and accordingly reduced the claim on these accounts. The very basis of initiation 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 under sections 80HH and 80-I which as per our discussion wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
