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TMI Blog2020 (2) TMI 1305X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of notice u/s 148 of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') after recording the reasons (page 9 of the Paper Book). In response thereto, the assessee filed reply stating that the original return of income may be treated as return filed in response to notice u/s 148 of the Act and also made several submissions. After considering various submissions of the assessee, the Assessing Officer (AO) completed the assessment by making various additions in para 7 of in its order. 3. The CIT(A) upheld the order of AO. 4. Aggrieved with the said decision of CIT(A) in the year under consideration, the assessee is in appeal before the Tribunal. 5. Before us, at the very outset the ld. Counsel submitted the case under consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded vide page 9 of the Paper Book. Further, he submitted in such factual situation i.e. where the AO has not made any addition on account of reasons recorded, other additions made by the AO are not sustainable in law, in view of the language of section 147 of the Act. The relevant lines of section 147 of the Act are extracted as under:- "147. If the Assessing Officer has reason to believe that income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153 assess or re-assess such income and also any other income chargeable to tax which has escaped the assessment........" 7. Referring to the above said provisions of the Act, ld. Counsel mentioned this is a case where "such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is the main reason which led to the initiation of re-assessment proceedings in the hands of the assessee. We are unable to find any justification for initiation of re-assessment on such ground as it is a case where the assessee had made repayment of loan out of regular books of account maintained by her. As against the opening balance of Rs. 20.00 lakh, the assessee paid Rs. 2.00 lakh vide cheque dated 25-11-2008. This transaction was properly recorded in the assessee's books of account. The assessee is payer and not the recipient of loan. Once the assessee paid Rs. 2.00 lakh to Kanhaiyalal Vishandas Gidwani out of her regular books of account, there cannot be any question of the assessee not substantiating the source of loan, which is over ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recourse to the provisions of section 147 of the Act. We, therefore, strike down the initiation of assessment proceedings and the consequential assessment order passed u/s 147 of the Act and also the impugned order." 9. From the above, it is evident that the Tribunal granted relief to the assessee on the similar facts and law. Considering the settled nature of the issue, we are of the opinion that the AO was not justified in taking recourse to the provisions of section 147 of the Act. We, therefore, strike down the initiation of assessment proceedings and the consequential assessment order passed u/s 147 of the Act and also the impugned order. Since the legal issue has been adjudicated, hence the issue on merits becomes infructuous. Accor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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