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TMI Blog2015 (8) TMI 614X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee and subsequently a notice for reopening under Section 148 of the Act was issued on 15.9.2008. The Assessing Officer, by order dated 17.12.2009, made an addition of Rs. 53,00,000/- after disallowing the genuineness of the compensation of Rs. 1,65,00,000/- alleged to have been paid by the assessee to certain parties for vacating the property. Challenging the said order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) which confirmed the validity of reopening under Section 147 of the Act. However, the Appellate Commissioner did not accept the addition of Rs. 53,00,000/- and disallowed only 20% of the total payment of Rs. 1,65,00,000/- under Section 40A(3) of the Act. 2. Challenging the order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the reopening of assessment under Section 147 of the Act is bad in law as no addition was made by the Assessing Officer with reference to the reasons recorded for reopening of assessment'. 5. In ITA No.374/2014 the following substantial question of law, which is numbered as question No.2, arises for consideration :- 'Whether on facts and in the circumstances of the case, the Tribunal was correct in not examining the merits of the matter regarding the genuineness of the expenditure claimed towards compensation paid for vacating the premises after adjudicating the appeal filed by the assessee regarding validity of the assessment made under Section 147 of the Act and recorded a perverse finding'. 6. We have heard Sri.K.V.Ara ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the clear opinion that the two parts of Section 147 (one relating to 'such income' and the other to 'any other income') are to be read independently. The phrase 'such income' used in the first part of Section 147 is with regard to which reasons have been recorded Under Section 148(2) of the Act, and the phrase 'any other income' used in the second part of the Section is with regard to where no reasons have been recorded before issuing notice and has come to the notice of the Assessing Officer subsequently during the course of the proceedings, which can be assessed independent of the first part, even when no addition can be made with regard to 'such income', but the notice on the basis of which pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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