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TMI Blog2024 (9) TMI 1330X X X X Extracts X X X X X X X X Extracts X X X X ..... sment for the concerned assessment year and while doing so, AO is also empowered to assess any other income, which has escaped assessment and, which comes to AO's notice, subsequently, albeit, during course of the assessment proceedings. Careful reading of Section 147 of the Act would show that it empowers an Assessing Officer to reopen the assessment, if, AO has reason to believe, that any income chargeable to tax has escaped assessment for the relevant year, 'and also bring to tax' , any other income, which may attract assessment, though, it is brought to AO's notice, subsequently, albeit, in the course of the reassessment proceedings. To put it plainly, the purported income discovered subsequently during the course of rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pening and no addition is made for which reason was recorded for reopening for alleged escapement of income. For this, assessee has raised the following grounds:- Reopening is bad in law 2. The Commissioner of Income tax (Appeals) erred in confirming the reopening of the assessment as correct. 2.1 The Commissioner of Income tax (appeals) ought to have appreciated that reopening of assessment u/s 148 is not correct when the facts were already examined and considered u/s 143(3). Reopening in this case only amounts to change in the opinion of the assessing officer and no further evidence were found to prove that the income of the assessee is concealed. Reliance is placed in this regard on the decision of Supreme Court in the case of CIT vs. Ke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cs Ltd M/s. Velmurugan Shelters P Ltd 462/2 27 cents 9417600 4289220 2 M/s. Sical Logistics Ltd M/s. Velmurugan Shelters P Ltd 461 part New S.No.461/1A1A 4 acres 11 cents 71678400 47250780 81096000 51540000 There is no deletion of free hold land or building in the fixed asset schedule. There is no income shown with respect to sale of land in profit and loss account and no capital gains was offered during the A.Y 2010-11. The total sale consideration of Rs. 5,15,40,000/- is much below the fair market value of Rs. 8,10,96,000. Hence the provisions of sec.50C of the IT act, 1961 are attracted in this case. The total income escapement amounts to Rs. 8,10,96,000/- and this needs to be added back to the total income. Hence, I have reasons to beli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wherein Hon ble High Court held as under:- 21.1. To put it plainly, the purported income discovered subsequently during the course of reassessment proceedings, can be brought to tax, only, if the escaped income, which caused, in the first instance, the issuance of notice under Section 148 of the Act, is assessed to tax. 22. Explanation 3, to my mind, supports this approach, which emerges upon a plain reading of the said provision, along with the main part of Section 147 of the Act. The emphasis in this behalf is on the expression ''and also bring to tax'' appearing in the main part of Section 147 in relation to the right of the Revenue to assess taxable income discovered during reassessment proceedings. In my view, Explanati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e can also assess or reassess any other income which has escaped assessment and which, comes to his notice during the course of the proceedings. However, if after issuing a notice under section 148, he accepted 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 fresh notice under section 148 would be necessary, the legality of which would be tested in the event of a challenge by the assessee..... According to ld.counsel, the issue of assessee i.e., assuming jurisdiction u/s. 147 r.w.s 148 of the Act and not making addition on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer to reopen the assessment, if, AO has reason to believe, that any income chargeable to tax has escaped assessment for the relevant year, 'and also bring to tax' , any other income, which may attract assessment, though, it is brought to AO's notice, subsequently, albeit, in the course of the reassessment proceedings. To put it plainly, the purported income discovered subsequently during the course of reassessment proceedings, can be brought to tax, only, if the escaped income, which caused, in the first instance, the issuance of notice under Section 148 of the Act, is assessed to tax. In the present case before us admittedly the AO has reopened the assessment for assessing capital gain on sale of land or profit on sale of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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