Audit query on goodwill is not valid "information" for estate duty reassessment under section 59(b).

Reopening under section 59(b) of the Estate Duty Act was invalid because an audit note that merely asked why goodwill had not been included in the principal value of the estate did not constitute "information" in the statutory sense. The High Court held that section 59(b) requires definite, substantive and unambiguous material giving reason to believe that chargeable property has escaped assessment. A speculative query or audit-induced suspicion, without any other supporting material, could not justify reassessment. The proceedings were therefore held invalid and the issue was decided in favour of the assessee.

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Issues: Whether reassessment proceedings under section 59(b) of the Estate Duty Act, 1953 were valid on the basis of an audit note that merely raised a query about inclusion of goodwill in the principal value of the estate.

Analysis: Section 59(b) permits reopening only when the Controller has, in consequence of information in his possession, reason to believe that chargeable property has escaped assessment. The audit note in question did not disclose any definite material showing that the firms had goodwill or that its value had been ascertained; it was only an uncertain query asking why goodwill had not been added. Such a query did not amount to substantive, definite, or unambiguous information. The record also did not show reliance on any other material, and a mere change of opinion or an audit-induced suspicion could not satisfy the statutory requirement of information.

Conclusion: The audit note was not "information" within the meaning of section 59(b), and the reassessment proceedings were invalid; the answer was against the Department and in favour of the assessee.

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