IN THE HIGH COURT OF DELHI AT NEW DELHI
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ITA 520/2012
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CIT ..... Appellant
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Through: Mr. Sanjeev Sabharwal, Sr. Standing Counsel with Mr. Puneet
Gupta, Jr. Standing Counsel.
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versus
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INDIAN VACCINE CORPORATION LTD. ..... Respondent
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Through: None.
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CORAM:
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HON'BLE MR. JUSTICE S. RAVINDRA BHAT
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HON'BLE MR. JUSTICE R.V.EASWAR
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O R D E R
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25.09.2012
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The Revenue claims to be aggrieved by the order of the Income Tax
Appellate Tribunal (?Tribunal?, for short) dated 27.02.2012 in ITA
No.5751/Del/2011. The question of law is whether the Tribunal fell into
error in holding that the reopening of assessment in the facts of this
case was not warranted.
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The assessment year in this case is 2003-04; the assessee filed its
return declaring a loss of `2,22,790/- in assessment proceedings under
Section 143(3) which were completed on 05.09.2005. The re-assessment
proceedings were initiated under Section 147 by a notice dated 15.02.2010
and orders were made on 29.10.2010 determining the total income of
`31,69,000/-. The assessee?s appeal against the reassessment in view of
the judgment of this Court in Ranbaxy Laboratories Ltd. vs. CIT (2011)
336 ITR 136 was allowed. The Revenue?s appeal was rejected by the
Tribunal which form the opinion that no question of law arose. The
Tribunal followed the view of this Court and the Bombay High Court in Jet
Airways (331 ITR 236) that the expression ?and also? occurring in Section
147 imply that the ?income? which was the subject matter of the notice
under Section 147 had to necessarily form part of the addition made in
the reassessment proceedings and in its absence, the primary jurisdiction
would cease. This Court has noted the grounds of appeal and considered
the submissions. The impugned order cannot be faulted. The decision in
Ranbaxy Laboratories Ltd. (supra) is clear in that matters which are the
subject matter of the notice under Section 147 have to necessarily form
part of the reassessment made. Therefore, no substantial question of law
arises. The appeal is accordingly dismissed.
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S. RAVINDRA BHAT, J
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R.V.EASWAR, J
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SEPTEMBER 25, 2012
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$ 3
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