Reassessment based on later Tribunal findings can be valid when they reveal defect or error in the original assessment.

Reassessment may be based on information received after the original assessment order if that later information reveals a defect or error and otherwise qualifies as information for reopening. The later Tribunal order for the earlier assessment year supplied the factual and legal position that prompted the reassessment for the subsequent year. On that basis, the reopening was treated as valid.

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Issues: Whether the reopening of the assessment for the assessment year 1975-76 was validly based on information contained in the Tribunal's later order relating to the assessment year 1974-75.

Analysis: Reopening of an assessment is not confined to information that was available on or before the date of the original assessment order. Information received later, if it reveals defects or error in the assessment and otherwise qualifies as information for reassessment purposes, can furnish a valid basis for reopening. The later Tribunal order relating to the earlier assessment year brought to light the relevant factual and legal position relied upon for reopening.

Conclusion: The reopening of the assessment was held to be valid and was answered in favour of the Revenue and against the assessee.

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