9911796707
TMI Blog2025 (1) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... from the assessment order dated 26.03.2022 passed under s. 147 r.w.s. 144B of the Act pertaining to assessment year 2014-15. 2. The assessee has raised following grounds in this appeal:- 1. "That having regard to the facts and circumstances of the case. Ld. CIT(A) ought to have quashed the impugned reassessment order as the same has been passed by Ld. AO us 147/144B and that too without assuming jurisdiction as per law and without complying with mandatory conditions u 147 to 151A as envisaged under the Income Tax Act, 1961. 2. That in any case and in any view of the matter, action of Ld. CITA) in not quashing the impugned reassessment order passed by Ld. AO u/s 147/148, which is illegal, bad in law and against the facts and circumstanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and circumstances of the case. Ld. CIT(A) has erred in law and on facts in not reversing the action of Ld.AO charging interest u/s 234A, 234B and 234C of the Income Tax Act. 1961." 3. As per grounds of appeal, the Ld. Counsel for the assessee has challenged the assumption of jurisdiction under s. 147 of the Act as well as the additions carried out towards unexplained investment under s. 69 of the Act on merits. 4. When the matter was called for hearing, the Ld. Counsel for the assessee pointed out that the assessment for AY 2014-15 in question was re-opened under s. 147 of the Act by issuance of notice dated 30.03.2021. The assessee challenged the assumption of jurisdiction under s. 147 of the Act broadly on two grounds:- (a) The reas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ] 30 taxmann.com 1 (Gujarat High Court). It was thus submitted that the issue is beyond the pale of controversy any more. The Ld. Counsel for the assessee thus submitted that Reassessment notice as well as the re-assessment order suffers from legal infirmities towards jurisdiction and therefore, re-assessment order is bad in law. 6. The Ld. Sr. DR for the Revenue, on the other hand, relied upon the action of the AO and submitted that power of the AO is not curtailed for making addition under s. 147 of the Act. 7. We have carefully considered the rival submissions. We straightway address ourselves to the validity of the additions made pursuant to jurisdiction assumed under s. 147 of the Act on a ground altogether different from the ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght portal thereby, I have sufficient form of 'Reason to believe' to frame my opinion. The information available with this office has been analyzed and I have framed my opinion after due application of all the facts and mind. 5. Finding of the AO During the year under consideration, assessee had undertaken following financial transactions: Sr.No. Type of transactions Amount 1. The assessee along with three other co-sharers had purchased an immovable property for a consideration of Rs 94,87,870/- wherein the share of the assessee was Rs. 28,46,360/- (1/3rd). This investment has not been disclosed by the assessee during the enquiry proceedings. Rs.14,23,180/- 2. The assessee (1/5th share) along with other co-sharers has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the above facts and findings, I have reason to believe that income chargeable to tax quantified as above has escaped the assessment. 7. Applicability of provisions of section 147/151 to the facts of the case Considering all the details and materials available on records, I am satisfied that the assessee has understated the income in its return of income filed as per above details and therefore the income chargeable to tax to the tune of Rs. 99,71,563/- has escaped the assessment. I have reasons to believe that this is a fit case for reopening and there is escapement of income within the meaning of Explanation 2(b) to Section 147 of the Income Tax Act, 1961." 9. The legitimacy of additions in the re-assessment proceedings dehors the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re carried out for any of such ground recorded, the AO could not make additions on an altogether different ground which did not form part of the reasons recorded by him as held by the judgements passed the Hon'ble Delhi High Court, Hon'ble Gujarat High Court as well as Hon'ble Bombay High Court (supra) as cited on behalf of the assessee. The Revenue could not controvert the fact that the additions on the points derives its genesis from the ground taken in the reasons recorded. In the light of the settled position of law, we find strong force in the plea of the assessee for reversal of the additions made. 11. We also find potency in the plea of the assessee that reasons recorded are plagued by the vice of being vague, non-descript and unint ..... X X X X Extracts X X X X X X X X Extracts X X X X
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