Case Law Details
Digamber Jain Atikshaya Keshtra VPO Bada Vs ITO (ITAT Jaipur)
ITAT Jaipur held that reassessment of income under section 147 of the Income Tax Act other than income in respect of which AO has formed a reason to believe that the income has escaped assessment is unsustainable in law.
Facts- Vide the present appeal, the assessee has mainly contested the CIT(A) has erred in confirming the action of AO of reopening the assessment u/s 147 of the Income Tax Act. Assessee states that action of CIT(A) is illegal, unjustified, arbitrary and against the fact of the case.
Conclusion- The words ‘such income’ refer to the income chargeable to tax which has escaped assessment and in respect of which the AO has formed a reason to believe that it has escaped assessment. Hence, the assessment or reassessment must be in respect of the income in respect of which he has formed a reason to believe that it has escaped assessment and also in respect of any other income which comes to his notice subsequently during the course of the proceedings as having escaped assessment. If the income, the escapement of which was the basis of the formation of the reason to believe, is not assessed or reassessed, it would not be open to the Assessing Officer to independently assess only that income which comes to his notice subsequently in the course of the proceedings under the section as having escaped assessment.
FULL TEXT OF THE ORDER OF ITAT JAIPUR
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