Whether other additions can be made in an order under Section 147/ 143(3) of the Income Tax act, 1961, which were not part of the reasons recorded for reopening the assessment even after insertion of Explanation 3 to Section 147 of the Act by Finance Act, 2009 when Assessing Officer, upon issuance of notice u/s 148 read with s.147 does NOT assess, or as the case may be, reassess the income which he had reasons to believe had escaped assessment and which formed the basis of a notice u/s 148 ?
Hon’ble Calcutta High Court considers all cases including contrary views.
Hon’ble Calcutta High Court while dismissing the Departmental appeal, inter alia, holds that “The foundation of a reassessment proceeding is a valid notice and if this notice is held to be invalid the entire edifice sought to be raised on such foundation has to collapse.”