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TMI Blog2015 (5) TMI 899X X X X Extracts X X X X X X X X Extracts X X X X ..... fact that the assessee company at the time of reassessment proceedings were given ample opportunity to substantiate its claim and was requested to provide justification/submission/provide proof of the claim. 2. The Ld. CIT (A) erred in holding that because at the time of initiation of proceeding u/s 147 the AO had not recorded reason towards claim of incorrect technical knowhow fees, the addition made on this ground subsequently in the assessment order could not survive." 3. Brief facts of the case are as follows. The assessee is a company engaged in the business of providing basic telephonic services. For the relevant assessment year, return of income was filed on 01.11.2004, declaring nil income. Assessment was completed vide order dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on the judgment of Hon'ble jurisdictional High Court in the case of Ranbaxy Laboratories Ltd. vs. CIT - 336 ITR 136, which in turn had followed the judgment of Hon'ble Bombay High Court in the case of CIT vs. Jet Airways (I) Ltd. - 331 ITR 236. The CIT (A) allowed the appeal of the assessee by holding that reopening of assessment is not valid. The CIT (A) followed the judgments of Hon'ble Delhi High Court in the case of Ranbaxy Laboratories Ltd. vs. CIT (supra) and Hon'ble Bombay High Court in the case of CIT vs. Jet Airways (I) Ltd. (supra). The CIT (A) did not adjudicate the issue on merits, since the reopening was held to be invalid. The relevant finding of the CIT (A) read as under :- "4. The issue involved and the submissions made b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... viso to Section 147, as it stands now, in no way, help/advance the case of the revenue. 7. We have heard rival submissions and perused the material on record. The solitary issue that arises for our consideration is whether the CIT (A) is justified in quashing the reassessment. The CIT (A) has quashed the reassessment for the reason that when no addition is made for the reasons recorded for issuance of notice u/s 148 of the Act, the AO ceased to possess jurisdiction u/s 147 of the Act to tax any other income. In the instance case, reasons were recorded u/s 148(2) of the Act to bring to tax u/s 115JB of the Act "Provisions for doubtful debts". However, no addition was made on this account when reassessment order u/s 147 read with section 143 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eassess 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, therefore, 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 under Section 148(2) must assess or reassess: (i). ' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Assessing Officer has to assessee 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 effect that the Assessing Officer has to assessee 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 the course of the proceedings However, if after issuing a notice under Section 148, he accepted the contention ..... X X X X Extracts X X X X X X X X Extracts X X X X
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