2007 (8) TMI 316

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....passed in I. T. A. No. 408/Chandi./88, in respect of the assessment year 1981-82: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law to hold that the reassessment proceedings initiated in the case of the assessee in relation to the assessment year under reference, are ab initio void?" 2. Brief facts of the case are that the assessee-firm is engaged in the business of purchase and sale of gold, silver and diamond ornaments. The assessee-firm is stated to have been dissolved on July 30, 1980. One of the partner, Shri Pawan Kumar Jain, took over the business and assets on book value. For the assessment year 1981-82, the assessment of the assessee-firm was completed on March 31, 1983, by adopt....

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....of the audit party because it would amount to change in opinion. The view of the Tribunal is discernible from the following observation: "2. . . . In fact in the impugned assessment order made under section 143(3) on March 25, 1987, read with section 147(b) in paragraph 2 he has frankly admitted that the case regarding valuation of closing stock of a partnership firm in the event of dissolution was referred to the Ministry of Law and it was opined by the Ministry that neither the Partnership Act nor the Income-tax Act, 1961, contain the specific provisions as to how closing stock has to be dealt with. This clearly shows a change of opinion from the opinion taken in the assessment made on March 31, 1983, by an officer who was different from....

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....munication another. If the distinction between the source of the law and the communication of the law is carefully maintained, the confusion which often results in applying section 147(b) may be avoided. While the law may be enacted or laid down only by a person or body with authority in that behalf, the knowledge or awareness of the law may be communicated by anyone. No authority is required for the purpose. That part alone of the note of an audit party which mentions the law which escaped the notice of the Income-tax Officer constitutes 'information' within the meaning of section 147(b) ; the part which embodies the opinion of the audit party in regard to the application or interpretation of the law cannot be taken into account by the Inc....