TMI Blog1990 (8) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... ition questioning the validity of the said notice on the ground that the said notice is exclusively based upon the objections of the audit party and that the objections or report of an audit party, cannot constitute "information" within the meaning of section 147(b) of the Act. In the counter-affidavit, it is admitted that the internal audit party pointed out certain facts and that the "same have been considered while the notice under section 148/147(b) was issued". It is further averted in the counter-affidavit that the facts pointed out by the audit party can constitute "information" within the meaning of section 147(b) of the Act. Along with the counter-afridavit, the respondent has enclosed a copy of the reasons recorded under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y granted by the Income-tax Officer inasmuch as section 40A(7) of the Act was not complied with by the assessee. Similarly, the audit party pointed out that the deduction of a sum of Rs. 23,386 on account of bonus was also wrongly granted inasmuch as it was not said that the said amount was paid within the statutory period. In Indian and Eastern Newspaper Society v. CIT [1979] 119 ITR 996, the Supreme Court pointed out that the opinion of an internal audit party of the Income-tax Department on a point of law cannot be regarded as "information" within the meaning of section 147(b). It was pointed out that while the law can be brought to the notice of the Income-tax Officer by any one, including the audit party, the application of law in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n before the Income-tax Officer himself and to draw his attention to the said decision of the Supreme Court and other decisions on the said point. But inasmuch as, in this case, the writ petition was entertained as far back as in 1979, and the proceedings stayed all these years, we do not think that adoption of such a course would be just in this case. We also find that the amounts given deduction of are too small compared to the total income of the assessee. Since the entire material is before us and because of the above circumstances, we thought it fit to decide the matter on merits. For the reasons given above, the impugned notice is quashed and the writ petition is allowed with no order as to costs. - - TaxTMI - TMITax - Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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