Audit objection alone cannot justify reassessment; reopening without independent assessment material was held unsustainable.

Reassessment was unsustainable because the Assessing Officer acted only on an audit objection and made no independent determination on the material before him. An audit party's opinion on a point of law does not amount to information for reopening an assessment under section 147(b) of the Income-tax Act, 1961. As the reopening rested entirely on that audit view, the appellate order setting aside the reassessment was upheld and the challenge failed.

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Issues: Whether reassessment could be sustained when the Assessing Officer acted solely on the basis of an audit objection and no independent determination was made.

Analysis: The reassessment was founded only on the audit opinion and not on any independent material considered by the Assessing Officer. An audit party's opinion on a point of law does not constitute information for reopening an assessment under section 147(b) of the Income-tax Act, 1961. Since the reassessment rested entirely on the audit objection, the order setting it aside did not call for interference.

Conclusion: The reassessment was unsustainable and the challenge to the appellate order failed.

Ratio Decidendi: An audit party's opinion on a point of law, by itself, is not information for reopening an assessment under section 147(b) of the Income-tax Act, 1961.

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