Following principles can be drawn from CIT Vs. Sun Engineering Works (P) Ltd.(1992) 198 ITR 297(SC) 64 Taxman 442(SC):
(a) ITO’s jurisdiction under this section is confined only to such income which had escaped tax. It does not extend to revising, re-opening or reconsidering the whole assessment.
(b) The assessee can not re-agitate questions decided in the original assessment proceeding.
(c) Initiation of reassessment proceedings does not set aside the entire assessment. However the assessee can claim expenses out of that escaped income.
(d) Those claims which are disallowed can not be re-agitated again.
Also ensure time limit of sending notice…..reasons should be furnished within 6yrs from the relevant assessment yr.
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