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TMI Blog2017 (9) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... rought to tax unexplained cash creditors amounting to 10 lacs which has apparently come to his notice during the course of reassessment proceedings. In AY 2009-10, again similar position exist wherein no disallowance has been made u/s section 40A(3) which form the basis for reopening of the assessment. The AO has however, brought to tax unexplained cash creditors amounting to 10 lacs and expenses worth 1.05 lacs have been disallowed towards various expenses which apparently come to his notice during the course of reassessment proceedings. Thus the very foundation of the proceedings u/s 147 are vitiated and accordingly, we are setting aside the order passed by the AO u/s 147 for both the years under consideration. - Decided in favour of asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under:- "In this case as per information received by this office from the ADIT(Inv.)-II, Jaipur's letter no. 1495 dated 03.03.2011 which reveals that the assessee firm has made substantial transactions including cash deposits & withdrawals during the asst. year under consideration. Apart from this it is also noticed that assessee has made following payments in cash which is contravention to section 40A(3) of the I.T. Act. Period of Transaction Amount of Transaction F.Y. 2007-08 ₹ 53,26,090/- Thus, income on a/c of disallowance to be made u/s 40(A)(3) of the IT Act has escaped assessment. I have therefore reasons that the transactions mentioned below are escaped income within the meaning of the section 147 of the IT Act. Pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . CIT (2014) 109 DTR 1(Del.) (HC) • ACIT vs. Major Deepak Mehta (2012) 344 ITR 641 ( CHHATTISGARD) (HC) • CIT vs. Jet Airways (I) Ltd. (2011)331 ITR 236 (Bom.) (HC) • CIT vs. Adhunik Niryat Ispat Ltd. (2011) 63 DTR 0212 (Del.) (HC) • Ranbaxy Laboratories Ltd. vs. CIT (2011) 336 ITR 0136 (Del.) (HC) 9. The ld DR is heard who has vehemently argued the matter and relied on the order of the lower authorities. 10. We have heard the rival submissions and purused the material available on record. The issue is no more res integra. In case of CIT vs. Jet Airways (I) Ltd. (Supra), Hon'ble Justice Dr. D.Y. Chandrachud, after considering the amendment brought in by the Finance (No. 2) Act of 2009, with effect from 1- 4-198 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd", as well as "also" have been used together and in conjunction. The Shorter Oxford Dictionary defines the expression "also" to mean 'further, in addition, besides, too'. The word has been treated as being relative and conjunctive. 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) 'such income'; and also (ii) any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under the section. The words 'such income' refer to the income chargeable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the former, he cannot independently assess the latter." "14. The second line of precedent is reflected in a judgment of the Rajasthan High Court in CIT v. Shri Ram Singh [2008] 306 ITR 343. The Rajasthan High Court construed the words used by Parliament in section 147 particularly the words that the Assessing Officer 'may assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings' under section 147. The Rajasthan High Court held as follows : "...if is only when, in proceedings under section 147 the Assessing Officer, assesses or reassesses any income chargeable to tax, which has escaped assessment for a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, it is noted that in AY 2008-09, no disallowance has been made u/s section 40A(3) which form the basis for reopening of the assessment. The AO has however, brought to tax unexplained cash creditors amounting to ₹ 10 lacs which has apparently come to his notice during the course of reassessment proceedings. In AY 2009-10, again similar position exist wherein no disallowance has been made u/s section 40A(3) which form the basis for reopening of the assessment. The AO has however, brought to tax unexplained cash creditors amounting to ₹ 10 lacs and expenses worth ₹ 1.05 lacs have been disallowed towards various expenses which apparently come to his notice during the course of reassessment proceedings. 12. In the light o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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