TMI Blog1986 (8) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... and arrived at gross bill amount of Rs. 5,61,452. Against this amount, they set off expenditure pertaining to trading account of Rs. 4,67,565 and of profit and loss account amount to Rs. 60,958 and arrived at net profit of Rs. 32,929. The return was accepted by the ITO. 3. Subsequently, the audit pointed out that the figure of Rs. 5,61,452 was not the correct amount received. The correct amount received was Rs. 6,14,404. According to them, there was an underassessment. 4. The ITO thereupon reopened the assessment. In the reassessment, he adopted the receipt at Rs. 6,14,404 as the basis for assessment. 5. The assessee appealed. The AAC upheld the validity of the assessment. Regarding the quantification of income, he remitted the matter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was under section 147(a) or under section 147(b). Even if the reopening was to be considered under section 147(b), he submitted that there was no information and the audit note was factually wrong. 8. Shri Santhanam for the department pointed out that the profit for the year had been worked out only from the total of Rs. 5,61,452. It should have been worked out from the figure of Rs. 6,14,404. Therefore, there was income escaping assessment. This income has escaped assessment because the full particulars were not given by the assessee. Assuming that section 147(a) will not lie, he submitted that the reopening could be considered under section 147(b). The information for this purpose is the audit note which had given only a factual informa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gone through the records and brought into the notice of the ITO that the earnest money deposits which had been retained by the PWD, is also part of the receipts of the assessee. This information on facts is from an outside authority and received by the ITO after the assessment has been completed. It, therefore, constitutes 'information' for the purpose of section 147(b). 12. We are not accepting Shri Chari's submission that the reopening of an assessment completed under section 143(1) can only be under section 143(2). Section 143(2) requires the ITO to serve a notice on the assessee to produce any evidence with him in support of the return. The section states under what circumstances the notice would be issued. One circumstance is where a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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