TMI Blog1966 (8) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... or the twelve months ended on that date. The assessment was completed on the 19th November, 1957, under section 23(3) of the Indian Income-tax Act, 1922, on an income of ₹ 3,789 after adding back some items considered by the Income-tax Officer as inadmissible items of expenditure. The tax was worked out as under : Rs. Rs. Income-tax at 30%1,136.70 Surcharge at 5%56.84 Corporation tax at 50% 1,894.50 Less rebate at 35% on ₹ 3,789 1,326.15 568.35 ------------- Total1,761.89------------- During the accounting period the assessee had issued bonus shares, not out of premiums received in cash, to the extent of ₹ 42,500. Under the Finance (No. 2) Act, 1957, such an issue would reduce the rebate from 35% to 5%. The papers pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cessive loss or depreciation allowance has been computed, he may at any time within four years of the end of that year, serve on the principal officer thereof, a notice containing all or any of the requirements which may be included in a notice under sub-section (2) of section 22 and may proceed to assess or reassess such income, profits or gains or recompute the loss or depreciation allowance ; and the provisions of the Act shall, so far as may be, apply accordingly as if the notice were a notice issued under that sub-section. There can be no doubt that the expression information in section 34(1)(b) of the Act includes information not only as to facts but also as to the state of the law. It is not equally clear whether a mere change ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riginal order of assessment is not discovered by the Income-tax Officer himself on further scrutiny but it is brought to his notice by another assessee or even by a subordinate or a superior officer, that would appear to be information disclosed to the Income-tax Officer. If the mistake itself is not extraneous to the record and the informant gathered the information from the record, the immediate source of information to the Income-tax Officer in such circumstances is in one sense extraneous to the record. It is difficult to accept the position that while what is seen by another in the record is ' information ' what is seen by the Income-tax Officer himself is not information to him. In the latter case he just informs himself. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d this information must lead to his belief that income chargeable to income-tax has escaped assessment for any year, or that it has been under-assessed or assessed at too low a rate or has been made the subject of excessive relief under the Act. To inform means to impart knowledge and a detail available to the Income-tax Officer in the papers filed before him does not by its mere availability become an item of information. It is transmuted into an item of information in his possession only if, and only when, its existence is realised and its implication are recognised. We consider the awareness of the Income-tax Officer, for the first time, after the assessment order of the 19th November, 1957, that the bonus sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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