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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 ..... he additions so made are not sustainable as held by the Hon'ble Delhi High Court in the case of Ranbaxy Laboratories Ltd. [ 2011 (6) TMI 4 - DELHI HIGH COURT] 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 issue. Accordingly delete both the additions made by the AO in the assessment completed u/s.143(3)/147 of the Act and allow this appeal of the assessee. - I.T.A. No. 1999/Kol/2019 - - - Dated:- 23-6-2021 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowance u/s. 14A read with Rule 8D ₹ 2,25,121/-. 3. Against the order passed by the AO u/s. 143(3)/147 of the Act, an appeal was preferred by the assessee before the Ld. CIT(A) challenging the validity of the assessment made by the AO as well as disputing both the additions made on merit. During the course of appellate proceedings before the Ld. CIT(A), it was inter alia contended on behalf of the assessee that there being no additions made by the AO in the assessment completed u/s. 143(3)/147 on the issue of capital gain which formed the reasons for reopening, other two additions made by him were not sustainable. Reliance was placed on behalf of the assessee on certain judicial pronouncements in support of this contention. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f initiation of reassessment proceedings for which reasons to believe recorded were income escaping assessment in respect of items of club fees, gifts and presents etc. In the reassessment completed by the AO, no addition however was made in respect of these items but the claim of the assessee for deduction u/s. 80HH and 80I was reduced. The Tribunal held that the Assessing Officer had jurisdiction to reassess issues other than the issues in respect of which proceedings were initiated even when the reasons for the latter ceased to survive. The question before the Hon'ble Delhi High Court was whether the Tribunal was right in holding so or not and the same was answered by the Hon'ble Delhi High Court in favour of the assessee holding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to subject to tax, any other income chargeable to tax, which the Assessing Officer may find to have escaped assessment, and which may come to his notice subsequently, in the course of proceedings under section 147. 5. Reliance was also placed by the Hon'ble Delhi High Court on the decision of Hon'ble Punjab Haryana High Court in the case of Atlas Cycle Industries Ltd. wherein it was held that even after insertion of Explanation 3 to Section 147 by the Finance No. 2 Act, 2009, existence of the income, for which the AO formed belief, to have escaped assessment, is a precondition, for including any other income chargeable to tax which had escaped assessment and came to the notice of the AO subsequently in the course of the reass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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