TMI Blog1992 (10) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... uestion arises in respect of the assessment years 1978-79 and 1979-80. Earlier, there was an order of assessment tinder section 143(3) read with section 144B of the Act. Subsequently, in a proceeding tinder section 263 of the Act, the Commissioner of Income-tax had occasion to consider the assessment made for the year 1980-81. While disposing of the said proceedings pertaining to the assessment year 1980-81, the Commissioner made certain observations regarding the weighted deduction claimed by the assessee under section 35B of the Act. Various items of expenses claimed by the assessee as deductible were referred to and considered and it was stated by the Commissioner that the assessee can claim the deduction provided the expenses squarely ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stance of the Revenue. It is too late in the day to contend that the order of a superior authority cannot be treated as information. The assessing authority may gain knowledge as to the provisions of law or as to the interpretation of certain facts relevant to the particular assessment year through whatever source and the same is generally treated as information. This question is now settled by the decision of the Supreme Court in A. L. A. Firm v. CIT [1991] 189 ITR 285. At page 293, the Supreme Court quoted an earlier decision of the Supreme Court in Kalyanji Mavji and Co. v. CIT [1976] 102 ITR 287, wherein four propositions were laid down by the Supreme Court, which read as follows : "(1) where the information is as to the true and co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of material already on record provided the formation of such opinion is consequent upon " information " in the shape of some light thrown on any aspect or law which the Income-tax Officer had not earlier been conscious of. The Supreme Court pointed out that there may be a situation where the Income-tax Officer accepts the plea of an assessee that a particular receipt is not income liable to tax, but on further research into law, he finds that there was a direct decision holding that category of receipt to be an income receipt. In such a situation, he would be entitled to reopen the assessment tinder section 147(b) according to proposition (4). Thereafter, the Supreme Court proceeded to analyse the difference between the propositions Nos. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [1979] 119 ITR 996 (SC) has warned that this line of cases cannot be taken to have been overruled by Kalyanji Mavji's case [1976] 102 ITR 287 (SC). The second paragraph from the judgment in Indian and Eastern Newspaper Society's case [1979] 119 ITR 996 (SC), earlier extracted, has also reference only to this situation and insists upon the necessity of some information which makes the Income-tax Officer realise that he has committed an error in the earlier assessment. This paragraph does not in any way affect the principle enumerated in the two Madras cases cited with approval in Anandji Haridas [1968] 21 STC 326 (SC). Even making allowance for this limitation placed on the observations in Kalyanji Mavji [1976] 102 ITR 287 (SC), the positio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs for reassessment. " In the light of the above observations, there can be no doubt that the assessing authority was entitled to be enlightened by any source which could be considered as information for the purpose of reopening the assessment under section 147(b). The Commissioner certainly is a superior authority and his views could be taken as a source of information by a subordinate officer like the Income-tax Officer. A learned judge of this court in Mysore Cements Ltd. v. ITO [1987] 167 ITR 370, held that the order of the Appellate Tribunal could be the source of information and, relying on such an order, the assessing authority may initiate proceedings under section 147(b) in respect of another assessment year. Sri Ramabhadran, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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