Reopening of assessment requires fresh information; a mere internal remark on alleged errors is not enough under income-tax law.

A communication from the Inspecting Assistant Commissioner that merely points out alleged errors in an assessment order does not amount to "information" for reopening under section 147(b) of the Income-tax Act, 1961. The internal remark was only an opinion on the correctness of the original computation and did not disclose any fresh or correct legal position brought to the Income-tax Officer's notice. Reassessment could not be sustained on that basis, and reopening on such material was held invalid in favour of the assessee.

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Issues: Whether a report or remark by the Inspecting Assistant Commissioner pointing out errors in the assessment order constituted "information" so as to justify reopening of the assessment under section 147(b) of the Income-tax Act, 1961.

Analysis: The reassessment was initiated on the basis of the Inspecting Assistant Commissioner's report, which merely pointed out alleged errors in the original assessment computation. Such a communication was not a disclosure of a correct legal position brought to the notice of the Income-tax Officer, but only a suggestion that the assessment order contained mistakes. A proceeding of this nature does not amount to "information" within the meaning of section 147(b). The answer follows the principle that a mere internal opinion on the correctness of an assessment, without fresh information, cannot sustain reopening.

Conclusion: The reassessment was not validly reopened under section 147(b); the question was answered in the negative, in favour of the assessee and against the Revenue.

Ratio Decidendi: A communication that merely points out errors in an assessment order, without supplying fresh information, is not "information" for the purpose of reopening an assessment under section 147(b) of the Income-tax Act, 1961.

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