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TMI Blog2016 (12) TMI 1898X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s. 148 of the Act was valid since the Assessing Officer did not make any addition on the grounds for which the reassessment notice was issued by him but made addition by estimating the income of the assessee @ 4% in place of 2.2% shown by the assessee. 3. I have heard the rival submissions and perused the materials available on record. In the instant case, the Assessing Officer observed that the assessee has filed the return of income for assessment year 2006-07 on 31.10.2006 at an income of Rs. 15,85,520/-, which was processed on 12.7.2007. Thereafter notice u/s. 148 of the Act was issued on 28.3.2012 on the ground that during survey operation conducted on 6.8.2009 in the business premises of Shri Abhishek Agarwal group of cases includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities. 5. I find that in the instant case, notice u/s. 148 of the Act was issued by the Assessing Officer for the reasons which read as under: "A survey operation was conducted on 6.8.2009 in the business premises of Shri Abhishek Agarwal group of cases including M/s. S.P. Enterprises. During the course of survey operation, books of accounts have been impounded for the assessment year 2006-07 to A.Ys 2010-2011. There are certain loose sheets, hundies, confirmation of accounts, etc in PR -69, pr-71 and PRr-72 and cash transaction which are not explained by the assessee during the course of survey operations. Therefore, I have reason to believe that income has escaped assessment. Issue notice u/s. 148 of the I.T.Act." 6. I find from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive 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. Evidently, what Parliament intends by use of the words "and also" is that the Assessing Officer, upon the formation of a reason to believe under section 147 and the issuance of a notice under section 148(2) must assess or reassess : (i)such income ; and also (ii) any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under the section. Explanation 3 does not and cannot override the necessity of fulfilling the conditions se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me, which he has reason to believe, has escaped assessment and also any other income, chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under the section ; and (iv) though the notice under section 148(2) does not include a particular issue with respect to which income has escaped assessment, he may none the less, assess or reassess the income in respect of any issue which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under the section. 7. Respectfully following the decision in the case of jet Airways (I) Ltd (supra), I hold that for assuming jurisdiction to frame an assessment u/s. 147 of the Act, what is essential ..... X X X X Extracts X X X X X X X X Extracts X X X X
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