TaxTMI 
TaxTMI 
1966 (8) TMI 62
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.... balance-sheet as at the 31st December, 1956, and the profit and loss account for the twelve months ended on that date. The assessment was completed on the 19th November, 1957, under section 23(3) of the Indian Income-tax Act, 1922, on an income of Rs. 3,789 after adding back some items considered by the Income-tax Officer as inadmissible items of expenditure. The tax was worked out as under : Rs. Rs. Income-tax at 30%1,136.70 Surcharge at 5%56.84 Corporation tax at 50% 1,894.50 Less rebate at 35% on Rs. 3,789 1,326.15 568.35 ------------- Total1,761.89------------- During the accounting period the assessee had issued bonus shares, not out of premiums received in cash, to the extent of Rs. 42,500. Under the Finance (No. 2) Act, 1957, ....
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....rate, or have been made the subject of excessive relief, or that excessive loss or depreciation allowance has been computed, he may at any time within four years of the end of that year, serve on the principal officer thereof, a notice containing all or any of the requirements which may be included in a notice under sub-section (2) of section 22 and may proceed to assess or reassess such income, profits or gains or recompute the loss or depreciation allowance ; and the provisions of the Act shall, so far as may be, apply accordingly as if the notice were a notice issued under that sub-section. There can be no doubt that the expression " information " in section 34(1)(b) of the Act includes information not only as to facts but also as to ....
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....essment or under-assessment, can be viewed as information which led to the belief that there has been escape from assessment or under-assessment. Suppose a mistake in the original order of assessment is not discovered by the Income-tax Officer himself on further scrutiny but it is brought to his notice by another assessee or even by a subordinate or a superior officer, that would appear to be information disclosed to the Income-tax Officer. If the mistake itself is not extraneous to the record and the informant gathered the information from the record, the immediate source of information to the Income-tax Officer in such circumstances is in one sense extraneous to the record. It is difficult to accept the position that while what is s....
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....e-tax Officer can act under section 34(1)(b). He must have information in his possession, which, in the context, means that the relevant information must have come into his possession subsequent to the making of the assessment order in question and this information must lead to his belief that income chargeable to income-tax has escaped assessment for any year, or that it has been under-assessed or assessed at too low a rate or has been made the subject of excessive relief under the Act. " " To inform " means " to impart knowledge " and a detail available to the Income-tax Officer in the papers filed before him does not by its mere availability become an item of inf....