The aspect of interpretation of the word "and" as "or", the existence of the word "also" is of a great significance, states ITAT

IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES “A”, JAIPUR

BEFORE SHRI SANDEEP GOSAIN, JM & SHRI VIKRAM SINGH YADAV, AM

ITA No. 90/JP/2020

Assessment Year: 2011-12

AVG Construction Pvt. Ltd.,
1st Floor, Trade Center No. 10, Opp. JP Underpass, Sahkar Marg, Lal Kothi, Jaipur.

vs

I.T.O.
Ward-6(2),
Jaipur.

Assessee by : Shri Ashok Kr. Gupta (Adv)

Revenue by : Smt. Monisha Choudhary (JCIT)

Date of Hearing : 04/08/2021

Date of Pronouncement : 02/09/2021

ORDER

The hearing of the appeal was concluded through video conference in view of the prevailing situation of Covid-19 Pandemic.

2. The Questioned matter was triggered through an information calling from Income Tax Department in form of Notice u/s 133(6) of IT Act, whereas sought an information regarding a sale of immovable property at Rs. 7,00,000/- valued u/s 50C at Rs. 728230/- and sale at 11,00,000/- valued at 12,00,064/- which was duly replied supported with copies of registered sale deed along with other supporting financial documents existed on Page No. 41-42 of PB-1.

3. From bare reading of the language of section 147 of the Act, rather makes it clear that of course the sine qua non for assumption of jurisdiction is, that the AO should have a reason to believe, that any income chargeable to tax, has escaped assessment, for any assessment year, and on such jurisdiction coming into existence, he is to proceed under that section, but then, he is to assess or reassess "such income", obviously the income, regarding which he has 'reason to believe" to have escaped assessment, for any assessment year, and while so assessing, such "income" of course may make assessment with respect to other income.

4. We have approached the issue of interpretation that has arisen for decision in these appeals, both as a matter of first principle, based on the language used in section 147(1) and on the basis of the precedent on the subject. We agree with the submission which has been urged on behalf of the assessee that section 147(1) as it stands postulates that upon the formation of a reason to believe that income chargeable to tax has escaped assessment for any assessment year, the Assessing Officer may assess or reassess such income "and also" any other income chargeable to tax which comes to his notice subsequently during the proceedings as having escaped assessment.

5. In the result, this appeal of the assessee stands allowed partly.
Order pronounced in the open court on 02nd September, 2021.

Please find attached the enclosed file for the full judgement