Raj Bala Vs ITO (ITAT Delhi)
In the instant case, the AO had initiated proceedings u/s 147 for escapement of income of Rs.9,43,897/- which was the returned income filed prior to issue of notice u/s 148 in the belated return and as well as in the return filed in response to notice u/s 148 and since the AO has accepted the said returned income and proceeded to make various other additions without issuing fresh notice u/s 147/148, therefore, we are of the considered opinion that the AO has exceeded his jurisdiction in reassessing issues other than the issues in respect of which the proceedings are initiated and reasons for the initiation of those proceedings cease to survive. We, therefore, hold that the various other additions made by the AO are not in accordance with the law being without jurisdiction and, therefore, are to be deleted. Since the assessee succeeds on this legal ground, the grounds raised by the assessee on merit are not being adjudicated being academic in nature.
FULL TEXT OF THE ITAT JUDGEMENT
ITA Nos.3396 & 3398/Del/2017 filed by the respective assessees are directed against the separate orders dated 31st March, 2017 of the CIT(A)-30, New ITA Nos.3396 to 3399/Del/2017 Delhi relating to assessment year 2010-11. ITA Nos. 3397 & 3399/Del/2017 filed by the respective assessees are directed against the separate orders dated 21st April, 2017 confirming the penalty levied u/s 271(1)(c) of the Act for the assessment year 2010-11. For the sake of convenience, all these appeals were heard together and are being disposed of by this common order.
ITA No.3396/Del/2017 (A.Y. 2010-11).
2. Facts of the case, in brief, are that the assessee is an individual and filed her return of income on 20th April, 2012 declaring the total income at Rs.9,43,897/-. Since the return was filed beyond the time allowed of upto one year from the relevant assessment year, the same was treated as invalid. The AO issued notice u/s 148 of the Act on 15th June, 2012 after recording the following reasons which has been reproduced by the CIT(A) on page 4 of the order:–
“In this case, the assessee has filed her return declaring total income of Rs.9,43,897/- (ITR-4) for the A.Y. 2010-11 in this office at ASK Counter vide ASK No. 090200412000468 on 20.04.2012, and received in Circle- 21 (1) on 20.04.2012. As per provisions of section 139 (1) of Income tax Act, 1961, the assessee was required to furnish her return of income by 31st July, 2010 without liable for any penal interest and upto 31.03.2011 without any penalty u/s 271F of the Income Tax Act. Further as per the provisions of section 139(4) of the Income Tax Act, the assessee was required to furnish the return upto 31.03.2012 alongwith penalty u/s 271F & other consequential actions. However, since the assessee failed to stick any of the above mandatory schedule of filing of her Income Tax return the above mentioned return was treated as invalid being time-barred. Penalty Notice u/s 271F was also sent to the assessee by speed post on 15.06.2012. However, since the assessee has shown business income of Rs. 9,43,897/- in the above invalid return, and total Gross receipts of Rs.9,43,897/- in the Col. No. 51(a) of Part-A-P&L at Page No-5 of the return, blank Col. No. 1 to 50 of Part-A-P&L at Page No. 5 of the return, claimed TDS of Rs.80,000/- and Advance tax of Rs.1,38,791/-, therefore, I believe that an income of Rs.9,43,897/- has escaped assessment. Hence, proceedings u/s 147 of Income Tax Act are being initiated against the Assessee for the assessment year 2010-11 and notice u/s 148 issued.”
3. Further, the AO mentions in the assessment order that there was an AIR information that the assessee has deposited cash amounting to Rs.10,10,000/- in her savings bank account with HSBC Bank, made payment of Rs.6,86,000/- and Rs.10,00,000/-were also deposited in saving bank account held jointly with Mr. Joginder Singh. The AO issued notice u/s 143(2) and 142(1) to the assessee along with a detailed questionnaire. The assessee appeared from time to time and filed the requisite details before the AO. Rejecting various explanations given by the assessee, the AO completed the assessment u/s 147/143(3) on 19th March, 2014 determining the total income at Rs.50,12,770/- by computing the same as under:-
