Reassessment notice may rely on later judicial decision as information, and omission to cite it does not invalidate reopening.

Reassessment under section 148 of the Income-tax Act can validly be initiated where the Income-tax Officer relies on a later judicial decision as information coming to his notice. The Supreme Court held that the Gujarat High Court ruling in Banyan and Berry constituted sufficient information for reopening, and the omission to expressly refer to that decision in the notice did not invalidate the reassessment notice. The High Court's contrary view was incorrect, and the notice was upheld, with the writ petition liable to be dismissed.

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Issues: Whether a notice issued under section 148 of the Income-tax Act, 1961 for reopening the assessment could be sustained when the Income-tax Officer relied upon a later judicial decision as information for initiating reassessment proceedings.

Analysis: The reopening was based on the Gujarat High Court decision in Banyan and Berry, which constituted information coming to the notice of the Income-tax Officer. The Court held that reassessment proceedings can be initiated on the basis of such information, and the omission to mention that decision in the notice did not invalidate the reopening. The High Court's view that the notice could not be supported by reference to that decision was held to be incorrect.

Conclusion: The notice under section 148 was valid, and the writ petition challenging it was liable to be dismissed.

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