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TMI Blog2023 (12) TMI 344X X X X Extracts X X X X X X X X Extracts X X X X ..... 2010-11 [ITA 47/2020], respectively. 3. Via the aforementioned appeals, the appellant/revenue seeks to assail a common order dated 03.09.2019 passed by the Income Tax Appellate Tribunal [in short, "Tribunal"]. 4. The Tribunal via the impugned order dated 03.09.2019 has quashed the reassessment proceedings triggered against the respondent/assessee under Section 148 of the Income Tax Act, 1961 [in short, "Act"]. 4.1 In reaching this conclusion, the Tribunal has taken recourse to the third proviso appended to Section 147 of the Act. 5. The appellant/revenue, being dissatisfied, has consequently lodged the above-captioned appeals. 6. To adjudicate the instant appeals, the following broad facts are required to be noticed: 6.1 Upon the Retu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the hands of the appellant. The AO may, using this information, consider if she has reason to believe that income of Rs. 4,95,00,000/- (for AY 10-11) has escaped assessment, and if so, may consider issuing notice u/s 148 for this assessment year to bring the amount to tax." In AY 2011-12, the addition made was Rs. 4,62,94,000/-. 6.5. This propelled the appellant/revenue to trigger reassessment proceedings against the respondent/assessee. Accordingly, a notice dated 29.03.2017 was issued qua the respondent/assessee under Section 148 of the Act. 6.6. Pending further progress of the reassessment proceedings, both the appellant/revenue as well as the respondent/assessee preferred appeals before the Tribunal vis-à-vis the order dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. 8. On the other hand, Mr C S Aggarwal, learned senior counsel, who appears on behalf of the respondent/assessee, has submitted that the third proviso appended to Section 147 squarely applied in the instant cases, and therefore, no interference is called for with the impugned order passed by the Tribunal. In support of his plea, Mr Aggarwal sought to place reliance on the following judgments: (i) Commissioner of Income Tax, New Delhi (Central) vs. Edward Keventer (Successors) P. Ltd. [1980] 123 ITR 200. (ii) Alcatel Lucent France vs. ADIT [2016] 69 taxmann.com 379 (Delhi). 9. We have heard learned counsel for the parties and perused the record. 10. The facts set forth hereinabove are not in dispute. The only issue that the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s assessment, for that assessment year: Provided further that nothing contained in the first proviso shall apply in a case where any income in relation to any asset (including financial interest in any entity) located outside India, chargeable to tax, has escaped assessment for any assessment year: Provided also that the Assessing Officer may assess or reassess such income, other than the income involving matters which are the subject matters of any appeal, reference or revision, which is chargeable to tax and has escaped assessment." [Emphasis is ours] 11. A careful perusal of the third proviso appended to Section 147 of the Act reveals that the AO is free to assess or reassess such income which is chargeable to tax, provided he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... triggered reassessment proceedings against the additions which were the subject matter of the appeal. The dicta of the two judgments cited by Mr Aggarwal [i.e., Commissioner of Income Tax, New Delhi (Central) vs. Edward Keventer (Successors) P. Ltd. and Alcatel Lucent France vs. ADIT] is squarely applicable. 15.1. Both judgments enunciate the principle that for zeroing down on matters which the AO cannot subject to assessment or reassessment proceedings under the third proviso to Section 147 of the Act the best way would be to examine the grounds of appeal. 16. Thus, having regard to the aforesaid, in our view, no interference is called for with the impugned orders, as no substantial question of law arises for our consideration. 17. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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