1998 (1) TMI 25

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....he assessment years 1973-74 and 1974-75 raise a common question of law. The assessee, Thanjai Murasu (P.) Ltd., Madras, it is said, purchased newsprint for the purpose of printing and circulating newspapers. The original assessments for the assessment years 1973-74 and 1974-75 had been completed. Thereafter, it appears the Income-tax Officer received information that in a survey conducted under....

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....nformation to believe that the interest payment allowed, in computing the income of the assessee was excessive, as the borrowed fund had been utilised to advance interest-free loans to certain connected parties, and, thereby there was escapement of income. After hearing the assessee, reassessments were completed and they were challenged before the Commissioner of Income-tax (Appeals), Madras. H....

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....was conducted for the assessment years in question and, therefore, was relevant information for initiating reassessment proceedings. On those facts, the assessee raised the question as to whether the finding that the belief of the Income-tax Officer that the income had escaped assessment was based on relevant materials is valid in law. The Tribunal referred the common question for the opinio....

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....ring the course of the assessment proceedings 1975-76. One such important material discovered was a stock book (RG 16 register) maintained to comply with the Central Excise Regulations and the said register revealed that both the sister concerns claimed high wastage of newsprint for the relevant assessment years than actually incurred. This apart, interest-free loans were advanced to connected par....