TMI Blog2003 (3) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... MENT On an application under section 256(1) of the Income-tax Act, 1961, the Tribunal has referred the following questions for our opinion: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that no information was given by the audit party within the meaning of section 147(b) of the Income-tax Act and that initiation of proceedings under that provision was wholly invalid?" "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in quashing the reassessment order?" The relevant assessment year is 1972-73. The assessment was completed on February 21, 1975. After completion of the assessment order, the audit party has pointed out that Rs. 69,338 have wrongl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act has been issued to the assessee. After hearing the assessee, a sum of Rs. 60,569 was disallowed being the provision for pension. In appeal before the Commissioner of Income-tax (Appeals), the Commissioner of Income-tax (Appeals) also confirmed the view taken by the Assessing Officer. In appeal before the Tribunal, the Tribunal has taken the view that the information pointed out by the audit is not information within the meaning of section 147(b) of the Act, therefore, the reopening is not valid and the Tribunal has allowed the appeal. While considering the submissions in para. 4, the Tribunal has given reason treating the information passed on to the Assessing Officer that it is nothing but a change of opinion, therefore, it does ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x Officer was supposed to have made the scrutiny of the case fully whether the claim for pension was allowable. The Commissioner of Income-tax (Appeals) proceeds on the presumption that the Income-tax Officer was misled by the debit entry and that he was prevented by the misleading entry from making further scrutiny as to the character and the liability of debit. We do not approve this approach. The debit entry is not such as to enable the Income-tax Officer to presume that the claim was allowable. On these facts, it cannot be said that the Income-tax Officer was made aware about the correct position of the debit only by the audit party. As the debit is such which involves secondary inquiry about the liability in our view it is implied that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir Lordships in the case of Indian and Eastern Newspaper Society v. CIT [1979] 119 ITR 996 (SC). The facts are not in dispute that all the basic facts required were before the Assessing Officer at the time of completion of the original assessment. The assessee-company has debited the profit and loss account by the amount of Rs. 69,338 for leave, salary and pension contribution. The break-up of that amount has also been given on account of different liabilities. If at the time of the original assessment a possible view has been taken that in case provision has been made for leave, salary and pension and in that case deduction can be allowed on such provision, actual expenses are not required or actual payment of amount against these liabil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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