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TMI Blog2021 (7) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... income of Rs. 94,620/-. Although the said return was initially processed by the AO u/s. 143(1) of the Act, the assessment was reopened by him for the reason that the capital gain arising from the sale of shares was not declared by the assessee in its return of income and there was thus escapement of income of assessee from the assessment on account of capital gain. The AO accordingly issued a notice u/s. 148 of the Act to the assessee on 10.06.2014 and completed the assessment u/s. 143(3)/147 of the Act vide an order dated 24.06.2019. In the assessment so completed, the AO did not make any addition on account of capital gain arisen to the assessee on sale of shares as alleged in the reasons recorded. He however made the following two additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grieved by the order of the Ld. CIT(A), the assessee is in appeal before the Tribunal. 4. I have heard the arguments of both the sides and also perused the relevant material available on record. In the support of the preliminary issue raised by the assessee in this appeal, the learned counsel for the assessee has submitted that no addition having been made by the AO in the assessment completed u/s. 143(3)/147 on the issue of capital gain arising from the sale of shares as raised in the reasons recorded, he had no jurisdiction to make the additions on other two issues and the additions so made by him and confirmed by the Ld. CIT(A) are not sustainable in law. He has relied inter alia on the decision of Hon'ble Delhi High Court in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Officer, assesses or reassesses any income chargeable to tax which has escaped assessment for any assessment year, with respect to which he had "reason to believe" to be so, then only, in addition, he can also put to tax, the other income, chargeable to tax, which has escaped assessment, and which has come to his notice subsequently, in the course of proceedings under section 147. To clarify it further, or to put it in other words, in our opinion, if in the course of proceedings under section 147, the Assessing Officer were to come to the conclusion, that any income chargeable to tax, which, according to his "reason to believe", had escaped assessment for any assessment year, did not escape assessment, then, the mere fact that the Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of such capital gain was made by the AO in the assessment completed u/s. 143(3)/147, I find merit in the contention of the learned counsel for the assessee that the AO had no jurisdiction to make the additions on two other issues and the additions so made are not sustainable as held by the Hon'ble Delhi High Court in the case of Ranbaxy Laboratories Ltd. (supra). Even the ld. DR has not been able to dispute this legal position emanating from the decision of Hon'ble Delhi High Court in the case of Ranbaxy Laboratories Ltd. (supra) as well as the other judicial pronouncements relied upon therein as discussed above. He has also not been able to bring to my notice any judicial pronouncement which is in favour of the revenue on this issu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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