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TMI Blog2024 (4) TMI 491X X X X Extracts X X X X X X X X Extracts X X X X ..... President, And Shri N.K. Billaiya, Accountant Member For the Assessee : Shri Sanjay Agarwal, CA, Ms. Apporva Bhardwaj, CA For the Department : Ms. Sapna Bhatia, CIT- DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER:- This appeal by the assessee is preferred against the order of the ld. PCIT, Gurgaon dated 26.02.2020 pertaining to A.Y. 2010-11. 2. The sum and substance of the grievance of the assessee is that the PCIT erred in assuming jurisdiction u/s 263 of the Act and further erred in holding the assessment order as not only erroneous but also prejudicial to the interest of the Revenue. 3. Representatives of both the sides were heard at length. Case records carefully perused. Relevant documentary evidence brought on record duly considered in light of Rule 18(6) of the ITAT Rules. 4. Briefly stated the facts of the case are that on the basis of information in the possession of the department, the assessee was served with a notice u/s 148 of the Income-tax Act, 1961 [the Act, for short] as the Assessing Officer had reason to believe that income has escaped assessment and this is a fit case for reopening the case for assessment u/s 147 of the Act. 5. The following reasons were recorde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Assessing Officer u/s 143(3) r.w.s 147 is Prima Facie erroneous in so far as it is pre-judicial to the interest of revenue. 3. Keeping in view the above facts, you are provided an opportunity to show cause as to why the assessment order passed by the ITO, Ward 2(2) Gurugram, dated 23.08.2017 for the A.Y. 2010-11 in your case should not be revised u/s 263 of the Act. You are requested to attend my office on 28.01.2020 at 11:30 AM either in person or through representative duly authorized in writing on your behalf or produce or cause to be produced at the said time, any documents or any other evidence on which you rely in your support. 4. In case of no reply/non-attendance as per above, it shall be assumed that you do not wish to say anything in the matter and the matter would be decided as per material available on record without any further notice/intimation to you. 7. On identical set of facts, this Tribunal in the case of Shri Paramjit Singh in ITA No. 446/DEL/2022 order dated 01.12.2022 has held as under: 14. In our considered opinion, for exercise of power u/s 263 of the Act, it is mandatory that the order passed by the Assessing Officer should be erroneous and prejudi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... retrospective effect from 1st April, 1989. Reference was made to the decision of the Bombay High Court in CIT versus Jet Airways India Limited, (2011) 331 ITR 236 (Bom.) in which it has been held as under: 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 re-computation, the Assessing Officer has to serve on the assessee a notice under subsection (1) of section 148 ; (iii) the Assessing Officer may assess or reassess such income, 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 assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. Section 147 mandates recording of reasons to believe by the Assessing Officer that the income chargeable to tax has escaped assessment. All these conditions are required to be fulfilled to assess or reassess the escaped income chargeable to tax. As per Explanation 3 if during the course of these proceedings the Assessing Officer comes to conclusion that some items have escaped assessment, then notwithstanding that those items were not included in the reasons to believe as recorded for initiation of the proceedings and the notice, he would be competent to make assessment of those items. However, the Legislature could not be presumed to have intended to give blanket powers to the Assessing Officer that on assuming jurisdiction under section 147 regarding assessment or reassessment of the escaped income, he would keep on making roving inquiry and thereby including different items of income not connected or related with the reasons to believe, on the basis of which he assumed jurisdiction. For every new issue coming before the Assessing Officer during the course of proceedings of assessment or reassessment of escaped income, and which he intends to take into account, he would be req ..... X X X X Extracts X X X X X X X X Extracts X X X X
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