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TMI Blog2022 (6) TMI 1019X X X X Extracts X X X X X X X X Extracts X X X X ..... ng documents. Other than these three additions there is no other addition or disallowance made by the Assessing Officer, which relates to cash deposits by the assessee made into his bank account. In other words, the Assessing Officer did not make any addition for which the assessment was reopened. Hon ble Delhi High Court in the case of Ranbaxy Laboratories Limited [ 2011 (6) TMI 4 - DELHI HIGH COURT] submits that if no addition is made for which the assessment was reopened other additions made other than the addition for which the reopening was made will not survive. Hon ble Delhi High Court considering the decision of the Hon ble Bombay High Court in the case of CIT Vs. M/s. Jet Airways (I) Limited [ 2010 (4) TMI 431 - HIGH COURT OF BOMBAY] held that if the Assessing Officer does not make any addition on the primary ground on the basis of which proceedings under Section 147 were initiated he cannot make other addition - Decided in favour of assessee. - I.T.A No. 3423/Del/2019 - - - Dated:- 20-6-2022 - Shri Challa Nagendra Prasad, Judicial Member, S.M.C. For the Assessee : Shri Subhash Chander Jindal,Adv. For the Revenue : Shri Om Parkash, Sr. D. R.; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which the assessment was reopened. The ld. Counsel for the assessee submits that the assessment was reopened for verification of financial transactions that the assessee has made cash deposits into bank account and whereas while completing the assessment no such addition was made. The ld. Counsel placing reliance on the decision of the Hon ble Delhi High Court in the case of Ranbaxy Laboratories Limited Vs. CIT (ITA. No. 148/2008) dated 3rd June, 2011 submits that if no addition is made for which the assessment was reopened other additions made other than the addition for which the reopening was made will not survive. 4. The ld. DR supported the orders of the authorities below. 5. Heard rival contentions perused the orders of the authorities below and the decisions relied upon. In the assessment order the Assessing Officer recorded the reasons for reopening of assessment as under:- As per information available on AST system, the assessee during the F. Y. 2009-10 has made cash deposits of Rs. 6868705/- in his bank a/c No. 30726919969 maintained with State Bank of India, Hansi. As per office record, the assessee has not filed his return of income for the F.Y. 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eering (supra) of the Apex Court. In the case of Sun Engineering (supra) the issue before the Supreme Court was whether in the course of reassessment on an escaped item of income could an assessee seek a review in respect of an item which stood concluded in the original order of assessment. The Supreme Court dealt with the provisions of Section 147, as they stood prior to the amendment on 1st April, 1989. In this context, the Supreme Court held that the expression escaped assessment includes both non-assessment as well as under-assessment . The expression assess was defined as referring to a situation where the assessment is made for the first time under Section 147, whereas reassess as referring to a situation where the assessment has already been made, but the Assessing Officer has reason to believe that there is under assessment on account of the existence of any of the grounds stipulated in Section 147. The Supreme Court referred to the judgment in the case of Jaganmohan Rao (supra) wherein it was held that the object of Section 147 enures to the benefit of the Revenue and it is not open to the assessee to convert the reassessment proceedings as an appeal or revision a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as under:- 11. ... Interpreting the provision as it stands and without adding or deducting from the words used by Parliament, it is clear that upon the formation of a reason to believe under Section 147 and following the issuance of a notice under Section 148, the Assessing Officer has the power to assess or reassess the income which he has reason to believe had escaped assessment and also any other income chargeable to tax. The words and also cannot be ignored. The interpretation which the Court places on the provision should not result in diluting the effect of these words or rendering any part of the language used by Parliament otiose. Parliament having used the words assess or reassess such income and also any other income chargeable to tax which has escaped assessment , the words and also cannot be read as being in the alternative. On the contrary, the correct interpretation would be to regard those words as being conjunctive and cumulative. It is of some significance that Parliament has not used the word or . The Legislature did not rest content by merely using the word and . The words and as well as also have been used together and in conjunction. Evi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rse of the proceedings However, if after issuing a notice under Section 148, he accepted the contention of the assessee and holds that the income which he has initially formed a reason to believe had escaped assessment, has as a matter of fact not escaped assessment, it is not open to him independently to assess some other income. If he intends to do so, a fresh notice under Section 148 would be necessary, the legality of which would be tested in the event of a challenge by the assessee. 18. We are in complete agreement with the reasoning of the Division Bench of Bombay High Court in the case of Jaganmohan Rao (supra). We may also note that the heading of Section 147 is income escaping assessment and that of Section 148 issue of notice where income escaped assessment . Sections 148 is supplementary and complimentary to Section 147. Sub-section (2) of Section 148 mandates reasons for issuance of notice by the Assessing Officer and sub-section (1) thereof mandates service of notice to the assessee before the Assessing Officer proceeds to assess, reassess or recompute escaped income. Section 147 mandates recording of reasons to believe by the Assessing Officer that the income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... our above discussions, the Tribunal was right in holding that the Assessing Officer had the jurisdiction to reassess issues other than the issues in respect of which proceedings are initiated but he was not so justified when the reasons for the initiation of those proceedings ceased to survive. Consequently, we answer the first part of question in affirmative in favour of Revenue and the second part of the question against the Revenue. 8. The ratio of the decision of the Hon ble Delhi High Court squarely applies to the facts of the case since the Assessing Officer did not make any addition for which the reopening was made. The Assessing Officer made various other additions other than the addition for which the assessment was reopened. In view of the above, respectfully following the above decision of the jurisdictional High Court, I hold that the reassessment order passed by the Assessing Officer under Section 143(3) read with Section 147 of the Act is bad in law and the same is quashed on this ground. Ground No. 4 of grounds of appeal is allowed. 9. Since the reassessment order has been quashed on the preliminary ground, the other grounds raised by the assessee on meri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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