TMI Blog1974 (10) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 as mess expenses. Considering that the expenses related to that of the directors during their trips to Madras, the Income-tax Officer disallowed a sum of Rs. 200. In respect of another sum of Rs. 3,489 claimed by the company as travelling expenses incurred in respect of the visit of the managing director to Russia, the Income-tax Officer was not prepared to consider it as a business expenditure and accordingly disallowed that item as well. When the business which was originally a partnership was converted into a private limited company all the partners became shareholders. There was an agreement on December 31, 1959, to the effect that the amount outstanding from the partners would be recouped from the amounts payable by the company in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sia 3,489 3. Car expenses 566 4. Proportionate interest on debit balance in the assessee's accounts in the company's books 8,697 ----------- 12,952 ----------- After hearing the assessee, the Income-tax Officer, by his order dated July 13, 1964, held that all these items are taxable perquisites which had escaped assessment and accordingly assessed them to tax in the reassessment order. On appeal the Appellate Assistant Commissioner upheld the legality of the assessment proceedings as well as the assessment of these four items as taxable perquisites. On a further appeal, though the Tribunal was of the view that reassessment proceedings were legally and validly taken, on merits, it held that the addition of Rs. 200 on acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t applicable. The learned counsel had taken us in this connection through a number of decisions rendered both by the Supreme Court and the High Courts in India. But we do not consider it necessary to refer to all the decisions except some of them which have a direct bearing on the question for consideration. In Salem Provident Fund Society v. Commissioner of Income-tax, while considering the scope of section 34 of the Indian Income-tax Act, 1922, this court held that information for the purpose of section 34 need not be wholly extraneous to the record of the original assessment. A mistake apparent on the face of the order of assessment would itself constitute information and that whether someone else gave the information to the Income-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t taxable, but subsequently on re-perusal of the assessment records wanted to reopen the assessment. It was held in those circumstances that it was not open to the Income-tax Officer to change his opinion, so to say, unless the knowledge on mistake of fact or law comes to his possession from an external source. It is pertinent to point out that the Supreme Court in that case itself had stated that even if the information be such that it could have been obtained during the previous assessment from an investigation of the material on record or the facts disclosed thereby or from other enquiry or research into the facts or law but was not in fact obtained, the jurisdiction of the Income-tax Officer is not affected. All those decisions where th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riginal assessment. Though there is no such specific finding we have to point out that the Tribunal proceeded on the assumption that the Income-tax Officer did not apply his mind on the earlier occasion and the assessee did not appear to have questioned that fact before the Tribunal. The order of the Tribunal also is silent in this regard. We have to assume, therefore, that the assessee did not raise this question specifically before the Tribunal. The only question that was argued on behalf of the assessee was that the assessment on the company was confirmed by the same officer prior to the original assessment on the assessee and there was no information coming to the possession of the Income-tax Officer subsequent to the original assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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