Reassessment under section 147(b) failed where reopening was based on directions, not fresh information in possession.

Reassessment under section 147(b) was held invalid because the Income-tax Officer acted on directions issued through the Commissioner rather than on fresh information in his possession. A direction to reopen and revise an assessment is not equivalent to "information" for section 147(b), and the statutory precondition of reason to believe that income had escaped assessment was not met. The reassessment was therefore without jurisdiction and the question was answered in favour of the assessee.

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Issues: Whether reassessment under section 147(b) of the Income-tax Act, 1961 was valid when the action was initiated on the basis of directions from the Commissioner and not on the basis of fresh information in the possession of the Income-tax Officer.

Analysis: The record showed that the Income-tax Officer acted pursuant to directions issued through the Commissioner and not because any new information had come into his possession. A direction to reopen and revise the assessment is not the same thing as information contemplated by section 147(b). The statutory condition for reopening, namely possession of information leading to reason to believe that income had escaped assessment, was therefore not satisfied. The reassessment was consequently without jurisdiction.

Conclusion: The reassessment under section 147(b) was invalid and the question was answered in favour of the assessee.

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