TMI Blog1981 (7) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... ombay Municipal Corporation was desirous of acquiring a portion of the aforesaid property, and the portion ad measures about 3 lakhs square yards. By an agreement dated October 25, 1967, between the Corporation and the petitioner, the possession of the land was handed over to the Corporation, and the petitioner received an amount of Rs. 12 lakhs towards the purchase price. It was agreed between the parties that the Corporation would take steps to acquire the land under the provisions of, the Land Acquisition Act, 1.894, and the petitioner would be entitled to the compensation to be determined under the provisions of the said Act. Accordingly, steps were taken by the Corporation to initiate proceedings under the said Act, and ultimately an a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsation awarded by the Land Acquisition , Officer was slightly more than what was computed by the ITO while completing the assessment earlier. The petitioner had also filed his return of income for the assessment year 1973-74, and that assessment was completed by the ITO on February 23, 1974. While passing the assessment order for that relevant year the ITO took into consideration the fact that the award was passed, on . April 13,1972, and that required the Corporation to pay the interest on the amount awarded to the petitioner right from the date when the Corporation took over the possession of the land. The question which cropped up for consideration before the ITO was as to whether the interest on that amount should be treated as a cap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 1973-74. As the information was totally unsatisfactory, the petitioner insisted upon further data, and a clarification was given by the ITO, by another letter dated February 22, 1978. By this letter whatever was stated in the earlier letter was reiterated, and it was further mentioned that the conclusion which the ITO has come to is supported by a decision of the Tribunal. The petitioner has thereafter preferred the present petition under art. 226 of the Constitution of India to challenge the legality of the action of the ITO. Shri Mukherjee, the learned counsel appearing in support of the petition, submitted that the action of the ITO in exercising jurisdiction under s. 147 of the I.T. Act is totally erroneous and the information disc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecides to take action under this clause. The officer must have certain information in his possession and which should lead him to believe that the income chargeable to tax has escaped assessment. It is now well settled that a mere, change of opinion would not authorise the officer to exercise the powers under this clause. It would suffice to make a reference to the latest decision of the Supreme Court in the case of Indian and Eastern Newspaper Society v. CIT [1979] 119 ITR 996. The Supreme Court in this judgment disapproved their earlier decision in Kalyanji Mavji and Co.'s case [1976] 102 ITR 287, to the effect that a case where income had escaped assessment due to oversight, inadvertence or mistake of the ITO would attract s. 34(1)(b) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w that the passing of the award under the provisions of the Land Acquisition Act is not necessary to hold that the transfer of the land has become complete, and this view was taken in spite of the objection of the petitioner that the transfer was not complete and the capital gains, as contemplated under s. 45 of the I.T. Act, had not become due till the award was passed. Shri Pradhan, appearing on behalf of the Revenue, submits that the opinion of the ITO was clearly erroneous and contrary to the settled position of law. It may be so, but the officer had taken a view and given his opinion while completing the assessment for the year 1968-69. The mere fact that the officer realised on a later occasion that his earlier opinion was not correct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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