1984 (8) TMI 176

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..... ise from the consolidated order of the AAC of IT dt. 1st July, 1983. 2. The relevant facts in brief are that the assessee is an individual and derives income from business in silver wares and gold jewellery. The assessment for the asst. yrs. 1977-78 and 1978-79 were originally completed by the ITO under s. 143(1) of the IT Act, 1961. The assessments were originally completed by the ITO under s. 1 .....

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..... sequently, he confirmed the addition made by the ITO for these years. 4. The ld. counsel for the assessee firstly contended that the ITO had no jurisdiction to reopen the assessment under s. 147(b) and, therefore, the AC ought to have cancelled the reassessments on that score. The ITO had no material so as to constitute fresh information and the addition made in the closing stock was as a result .....

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..... the reassessments made were valid in law. Even on merits he supported the orders of the authorities and urged that the additions made should be sustained. 6. We have duly considered the rival contentions and facts of the case. At the outset, we have to observe that the contentions raised by the ld. counsel for the assessee are quite valid and forceful. The ITO has originally accepted the income .....

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..... y and remain in stock the increase in value is only notional and not real so as to constitute information for the purpose of taxation. Only when sales are effected commercial profits arises therefrom, and it is well accepted maxim that no one makes profits out of himself. When once the silver wares were manufactured and remained in stock and carried forward from year to year the market value of su .....

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..... fied by the facts and circumstances of the case. It is only a case of change of opinion and there is no material information warranting reopening of assessments. Therefore, we have no hesitation in setting aside the orders of the AAC and that of the ITO as the reassessments were not justified in law and in the facts and circumstances of the case. 7. In the result, the appeals are allowed.
Cas .....

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