1991 (10) TMI 28

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....RNAN J. -At the instance of an assessee to income-tax, the Income-tax Appellate Tribunal has referred the following question of law for the decision of this court "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessment in the case of the assessee for the year 1974-75 was validly reopened ? " The respondent is the Revenue. We are conc....

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....ion of the Bombay High Court in Indian Oil Corporation Ltd. v. S. Rajagopalan, ITO [1973] 92 ITR 241. In the reassessment order dated November 29, 1976, set off of unabsorbed development rebate was not allowed to the extent of Rs. 36,146, since the condition regarding the creation of the reserve was not satisfied. In appeal, the Commissioner of Income-tax (Appeals), following the decision of the S....

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.... at the instance of the assessee that the Income-tax Appellate Tribunal has referred the question of law formulated hereinabove for the decision of this court. We heard counsel. The main thrust of the argument was that the reopening of the assessment based on the audit note is illegal and without jurisdiction. We are unable to accept the said plea. The Income-tax Appellate Tribunal, in its orde....

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....he audit had done is only to mention the law which had escaped the notice of the Income-tax Officer and he determined for himself what is the effect and consequence of the law mentioned in the audit note. This is not a case where the audit party pronounced on the law and elucidated the scope of the legal provisions. The audit note, in the circumstances, amounted to " information " within the meani....