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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 ..... 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 recorded for initiating proceedings u/s 147 of the Act: "The assessee as not filed his return of income for A.Y. 2010-11. As per the information available at ITS Details (CIB/AIR/TDS/OLTAS) for Financial Year 2009-10 relevant to A.Y. 2010-11, the assessee has deposited cash of Rs. 1200000/- in his bank account maintained with Standard Charted Bank and Yes Bank Gurgaon during the F.Y. 2009- 10. Therefore, a letter dated 18.02.2017 was issued to assessee, to provide an opportunity before taking any further action in this matter. In response to this letter, the assessee neither attended nor filed any reply in this office. Since the assessee failed to submit the response of the letter and assessee had not filed his return of income for A.Y. 2010-11. Therefore source of cash deposit of Rs. 12,00,000/- is not proved, and hence, it is clear that he has deposited this cash in bank account, form his undisclosed income. Therefore, the same has not been disclosed to ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 prejudicial to the interest of the Revenue. A perusal of the assessment order shows that the returned income was accepted by the Assessing Officer and no addition was made for reasons recorded at the time of issue of notice u/s 148 of the Act. 15. This is an undisputed fact that the issues which prompted the Assessing Officer to reopen the assessment were duly considered and reply of the assessee was accepted and no addition was made. This fact has also not been disturbed by the PCIT in his order u/s 263 of the Act. 16. In our considered opinion, the Assessing Officer could not have made the addition on the issues raised by the PCIT in his order as no addition was made on account of reasons recorded for reopening the assessment. 17. The Hon'ble High Court of Delhi in the case of CIT Vs. Software Consultants I.T. Appeal No. 914 of 2010 order dated 17.01.2012 21 Taxmann.com 155 was seized with the following question of law: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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." 11. Thereafter, the High Court referred to the decision of the Rajasthan High Court in the case of CIT versus Shri Ram Singh, (2008) 306 ITR 343 (Raj.) in which it has been observed as under: "It is only when, in proceedings under section 147 the Assessing Officer, assesses or reassesses any income chargeable to tax which has escaped assessment for any assessment year, with respect to which he had 'reason to believe' to be so, then only, in addition, he can also put to tax, the other income, chargeable to tax, which has escaped assessment, and which has come to his notice subsequently, in the course of proceedings under section 147. To clarify it further, or to put it in other words, in our opinion, if in the course of proceedings under section 147, the Assessing Officer were to come to the concl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot 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 required to issue a fresh notice under section 148. 19. In the present case, as is noted above, the Assessing Officer was satisfied with the justifications given by the assessee regarding the items, viz., club fees, gifts and presents and provision for leave encashment, but, however, during the assessment proceedings, he found the deduction under sections 80HH and 80-I as claimed by the assessee to be not admissible. He consequently while not making additions on those items of club fees, gifts and presents, etc., proceeded to make deductions under sections 80HH and 80-I and accordingly reduced the claim on these accounts. 20. The very basis of initiation of proceedings for which reasons to believe were recorded were income escaping assessment in respect of items of club fees, gifts and presents, etc., but the same having not been done, the Assessing Officer proceeded to reduce the claim of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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