2005 (12) TMI 87

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....he case and taking into account the Supreme Court's decision in Kalyanji Mavji and Co. v. CIT [1976] 102 ITR 287 and A. L. A. Firm v. CIT [1991] 189 ITR 285, the Appellate Tribunal was right in law in cancelling the reassessment made in the case for the assessment year 1980-81?" The brief facts relating to the above reference are as under: The assessee-respondent was doing business in production and sale of cinematography films. The relevant assessment year is 1980-81 and the corresponding accounting year ended as on June 30, 1979. The respondent-assessee by his return of income, on December 5, 1980, admitted a loss of Rs. 1,01,120 and the original assessment was completed under section 143(3) determining the loss at Rs. 91,120 on Mar....

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....o the Assessing Officer to invoke the provisions of section 147(b) on the ground that invoking of jurisdiction under section 147(b) was not justified and accordingly, cancelled the reassessment made on the basis of such reopening. The Revenue filed a reference application before the Income-tax Appellate Tribunal under section 256(1) of the Act, requesting the Tribunal, to refer the abovementioned question to this court for its opinion. The Income-tax Appellate Tribunal rejected the reference application on the ground that there is no question of law arising out of the order of the Tribunal. Later, the Revenue filed a petition under section 256(2) of the Act, requesting this court to give direction to the Tribunal to refer the matter to t....

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....pen the assessment under section 147(b). Therefore, invoking the provision of section 147(b) making reassessment was not justified. It is also submitted that an error discovered on a reconsideration of the same material does not give him that power and for this, he relied on the apex court judgment reported in Indian and Eastern Newspaper Society v. CIT [1979] 119 ITR 996 to support his proposition. We have heard the arguments advanced by both the parties. The letter dated March 19, 1983, was placed before us. The said letter was addressed to the Assessing Officer and the same was received by the Officer on March 24, 1983. The letter reads as follows: "In the course of hearing under section 143(2), you doubted the genuineness of the f....