Explanation 3 to section 147 has no application In relation to issue cropped up subsequent to original assessment on new set of facts

FULL TEXT OF THE HIGH COURT JUDGMENT / ORDER IS AS FOLLOWS:-

This appeal is sought to be preferred and admitted against the judgment and order of the learned Tribunal dated 21-6-2013 in relation to the assessment year 2005-06 on the following suggested question of law :–

“In the facts and circumstances of the case, Whether the Hon’ble Tribunal (ITAT) is correct in law in annulling the assessment order passed under section 143 read with section 147 of the Income Tax Act, 1961, when the said assessment order is valid and sustainable on the facts and merits of the case?

2. We have heard Mr. B. Narasimha Sarma, learned Counsel for the appellant, and have gone through the judgment and order of the learned Tribunal.

3. It appears that the learned Tribunal has found that the reasons recorded for reopening the assessment has no nexus with the income ultimately assessed under section 147 of the Income Tax Act, 1961. The finding of the learned Tribunal is reproduced here under :–