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TMI Blog2018 (3) TMI 153X X X X Extracts X X X X X X X X Extracts X X X X ..... hat notice is invalid. As such, if the notice is valid, then the foundation remains and the proceedings on the basis of such notice can go on. We may only reiterate here that once the proceedings have been initiated on a valid notice, it becomes the duty of the Assessing Officer to levy tax on the entire income (including ‘any other income’) which may have escaped assessment and comes to his notice during the course of the proceedings initiated under section 147 of the Act - Decided in favour of revenue - I.T.A. NO. 100153/2015 C/W I.T.A. NO. 100152/2015 - - - Dated:- 21-2-2018 - MRS. S. SUJATHA AND MR. JOHN MICHAEL CUNHA JJ. Appellants (By Sri. Y.V. Raviraj, Adv.) Respondent (By Sri. M.V. Sheshachal, Senior Counsel for Sri. G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g aggrieved by the same, revenue is in appeal raising the following substantial questions of law: Whether in law, the Tribunal is justified in setting aside the order of reassessment passed by the assessing authority on the ground that, the additions made therein are not the items of alleged escapement of income for the issuance notice under section 147 of the Income Tax Act for reopening the assessment, when Explanation 3 to section 147 specifically lays down that the assessing officer may assess or reassess the income in respect of any issue, which has escaped assessment, and such issue comes to his notice subsequently in the course of the proceedings, under this section, not withstanding that the reasons for such issue have not b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s case is squarely covered by the jurisdictional High Court judgment in Govindaraju supra, whereby the Division Bench of this Court has held at paras 38, 39 and 40 as under: 38. Considering the provision of section 147 as well as its Explanation 3, and also keeping in view that section 147 is for the benefit of the Revenue and not the assessee and is aimed at garnering the escaped income of the assessee [VIZ. Sun Engineering (supra)] and also keeping in view that it is the constitutional obligation of every assessee to disclose his total income on which it is to pay tax, we are 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. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he proceedings have been initiated on a valid notice, it becomes the duty of the Assessing Officer to levy tax on the entire income (including any other income ) which may have escaped assessment and comes to his notice during the course of the proceedings initiated under section 147 of the Act. 10. In view of the said ruling of this Court, we do not find any reasons to differ from the same. We find it appropriate to follow the same. Hence, the substantial question of law is answered in favour of the revenue and against the assessee. 11. It is significant to note that the Tribunal having quashed the reassessment proceedings had no option to examine the matter on the merits. Such being the position, we deem it proper to remand the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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