1981 (4) TMI 142

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....ut under statement of closing stock from the order of the AAC passed in the appeal relating to the asst. yr. 1972-73. The AAC gave a office note in the proceedings relating to the asst. yr. 1972-73 as follows: "It naturally flows format he decision given by me that the ITO should immediately examine the possibility of initiating reassessment proceeding for asst. yr. 1971-72 because if the opening and closing stock of asst. yr. 1971-72 and earlier years are also revealed having regard to correct cost price to the apt and if the rate of opening stock is found lower than the e rate of closing stock, naturally the additions are to beamed to the assessable income of those years also". 2. On the basis of the said office, note the ITO initia....

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....Upon careful perusal of the order of the AAC, it appears that the conclusion is absolutely correct. There is no dearth of the authorities that a condition precedent for initiating re-assessment proceedings is there asonabel belief of the ITO that income had escaped assessment. Even the plain language of s. 147 clearly set out such precedent condition. The question is whether such condition has been satisfied in the instant case. We have already reproduced reason to believe as recorded by the ITO. He simply issued notice under s. 148 as per AAC's office note order dt. 23rd Oct., 1975, which has also been reproduced by us above. The argument of Shri Chaudhary, the ld. Deptl. Rep. Is that an order of superior authorities constitutes "informati....