Sunil Jain Vs National Faceless Assessment Centre(Delhi High Court)
Date 22nd July, 2022
Sub-When an item of addition is being contested before CIT(Appeals) against original assessment, can notice u/s 148 be issued in respect of another item of undisclosed income of the same nature on the plea that the jurisdiction to deal with the same lies with the CIT(Appeals)?

The original assessment in this case was completed u/s 143(3) by mailing addition towards cash deposit during demonetisation period with Corporation bank, though there was cash deposited with PNB also during that period which was not disclosed in the return of income and neither assessed. The original addition was under appeal. In a notice which was issued u/s 147 to deal with the cash deposit with PNB, it was inter alia contended that the jurisdiction to deal with the same lies with CIT(Appeals) who has power to enhance the addition u/s 251.
However, the Delhi High court held just because the Appellate Authority has the power to modify an assessment order with regard to a source of income that has not been considered during assessment proceedings does not mean that the jurisdiction of the authorities under Section 148 of the act would be excluded when the issue involved in the proceeding under Section 148 of the Act is not the same as that being considered under Section 251 of the Act and thus relying on Chhabil Das Agarwal 357 ITR (SC), the writ was dismissed to try appeal remedy.

The judgement correctly brings out the law and it is astonishing that the court dealt with merits also in so many words.

Ramesh Patodia
23-07-2022