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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 ..... diction to frame an assessment u/s. 147 of the Act, what is essential is a valid reopening of a previously closed assessment. If the very foundation of the reopening is knocked out, any further proceedings in respect to such assessment naturally would not survive. Decided in favour of assessee. - ITA No. 32/Ran/2016, ITA No. 46/Ran/2016 - - - Dated:- 6-12-2016 - SHRI N.S SAINI, ACCOUNTANT MEMBER For the Assessee : S/Shri S.K.Podar/Devesh Podar, AR For the Revenue : Shri Sanjay Pal , DR ORDER These are cross appeals filed by the assessee and the revenue against the order of CIT(A)-Jamshedpur dated 27.11.2015, for the assessment year 2006-07. First, we take up the appeal of the assessee in ITA No.32/Ran/2016: 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... found during the course of survey on 6.8.2009 in the business premises of Shri Abhishek Agarwal group of cases including the assessee was made by him. The only addition made was estimating the income of the assessee @ 4% in place of 2.2% shown by the assessee. The assessee has challenged the reopening of assessment and submitted that when on ground on which the reopening of assessment was based, no additions were made by the Assessing Officer in the order of reassessment; he cannot make addition on some other grounds which did not form part of the reasons recorded by him. For this proposition, he relied on the decision of Hon ble Gujarat High Court in the case of CIT vs Mohd Juned Dadani (2013) 355 ITR 172 (Guj) and the decision of Hon ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td (supra) held as under: Explanation 3 to section 147 of the Income-tax Act, 1961, was inserted by the Finance (No. 2) Act of 2009, with effect from April 1, 1989. The effect of the Explanation is that even though the notice that has been issued under section 148 containing the reasons for reopening the assessment does not contain a reference to a particular issue with reference to which income has escaped assessment, the Assessing Officer may assess or reassess the income in respect of any issue which has escaped assessment, when such issue comes to his notice subsequently in the course of the proceedings. Parliament having used the words assess or reassess such income and also any other income chargeable to tax which has escaped ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce under section 148 , he accepts 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 notice under section 148 would be necessary in the event of challenge by the assessee. The effect of section 147 as it now stands after the amendment of 2009 can therefore, be summarised as follows : (i) the Assessing Officer must have reason to believe that any income chargeable to tax has escaped assessment for any assessment year ; (ii) upon the formation of that belief and before he proceeds to make an assessment, reassessment or recomput ..... X X X X Extracts X X X X X X X X Extracts X X X X
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