TaxTMI 
TaxTMI 
1983 (2) TMI 131
X X X X Extracts X X X X
X X X X Extracts X X X X
....objections and that type of audit report was considered by the Tribunal in WTA Nos. 630 & 631 Mds/79 M.V. Arunachalam and W.T.A. Nos. 632 to 635/Mds/79 (M.A. Murugappan) as involving interpretation of law and could not constitute information. He, therefore, applied the decision of the Supreme Court in the case of Indian & Eastern Newspaper Society vs. CIT (1979) 12 CTR (SC) 190 : (1979) 119 ITR 996 (SC) and cancelled the reassessments. 3. In these appeals a copy of the audit report was placed before us by the revenue to point out that the audit report had only brought to the notice of the WTO the existence of s. 5(1)(iv)(b) which exempts certain buildings and the decision of the High Court in the case of Consolidated Tea & Land Co. (India)....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ents were made expressed an opinion on a question of law and could not constitute information as held by the Supreme Court in the case of Indian & Eastern Newspaper Society vs. CIT (1979) 12 CTR (SC) 190 : (1979) 119 ITR 996 (SC). Relaying on the principles in the cases of Madras Auto Service vs. ITO (1975) 101 ITR 589 (Mad), 35 STC 170 and Kuppuswamy Mudaliar (R) Sons 45 STC 158, it was argued that the latest decision of the Supreme Court is effective from the inception and the audit report could never be regarded as valid information for the purpose of initiating proceedings u/s 17(1)(b) and in any event, the reassessment completed on that basis will be untenable. 4. On a consideration the rival submissions, we are of the opinion that th....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of the firm, the exemption has been claimed under sec. 5(1)(iv)(b) for labour lines, staff quarters, etc. in determining the value of net assets of the firm. Section 5(1)(iv)(b) exempts only such buildings or group of buildings required by the cultivator by reasons of his connection with the land as dwelling house, store house or outhouse. It has been held in the case of Consolidated Tea Co. 76 ITR 589 that the staff quarters are not building occupied by Tea Company as their dwelling house." The remarks in the order sheet by the WTO were as follows: "Please see audit objection file. In consequence of information in my possession, I have reason to believe that the net wealth chargeable to tax has escaped assessment. The assessment is, th....