TaxTMI 
TaxTMI 
1993 (10) TMI 138
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....n income of Rs. 4,00,108 before adjustment of loss of earlier years. The assessment was completed under section 143(3) on 13-8-1984. The total income was determined at Rs. 4,03,770 by disallowing an amount of Rs. 3,666 under section 35B. 3. Subsequently, on 25-3-1988, the Assessing Officer passed an assessment order under section 143(3), read with section 147(b) of the Income-tax Act, 1961. In the course of the said reassessment order, the Assessing Officer stated that notice under section 148 was issued on information that income chargeable to tax had escaped assessment. In the reassessment order, the Assessing Officer disallowed Rs. 29,442 from the foreign buyers' entertainment expenditure of Rs. 34,442. Against the reassessment order da....
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....al assessment and the Assessing Officer allowed weighted deduction as claimed. He failed to see that in the course of the assessment proceedings for the assessment year 1983-84 while claiming weighted deduction under section 35B complete details including foreign buyers' entertainment expenses were shown in the same statement in which the weighted deduction was claimed. This statement filed for the assessment year 1983-84 constituted information from a source external to the record for the assessment year under consideration and that it led the Assessing Officer to go into the details filed separately for the export development expenses for the year under consideration. He failed to note that Explanation 2 to section 37(2A) was inserted by ....
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....24-6-1982 the assessee's counsel filed 36 items as detailed therein, which included details of the export promotion expenses under item (11). This can be seen at page 1 of the paper-book. The details of export promotion expenses for the year 1980-81 are given at page 7 of the paper book. The said statement clearly showed foreign buyers' entertainment expenses of Rs. 34,442. Thus, it will be seen that all this information was before the Assessing Officer during the original assessment, proceedings which culminated in the passing of an assessment order on 13-8-1984 under section 143(3). So, the Department cannot contend that the error committed by the Assessing Officer in not disallowing any amount under section 37(2A) was information obtaine....