1999 (2) TMI 722

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....ening the assessment under Section 147(a) of the Income Tax Act, 1961 on the reason recorded, nor any cause for re-opening of the assessment under Section 147(b) of the Act on the reasons recorded on 31.3.77 was justified in law in sustaining the re- opening of assessment under Section 147(b) of the Act on the reasons and grounds given in the order passed an appeal? 2. Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the re-assessment proceeding initiated under Section 147(a) of the Act by issue of notice dated 31.12.76 under Section 148 of the Act on the reasons recorded, could be validly converted into a proceeding under Section 147(b) of the Act subsequently? 3....

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....7(a), the I.T.O. found that it could not be sustained under that Sub-section and converted the same into a proceeding under Section 147(b) and concluded the matter. The order of the I.T.O. was challenged before the Appellate Assistant Commissioner (A.A.C) who set aside the same. But on further appeal by the Revenue, the Tribunal modified the order of the A.A.C. and permitted the I.T.O. proceed afresh under Section 144B of the Act. When the matter came before the High Court, the reference was answered in favour of the assessee and the order passed by the I.T.O. on re- assessment was set aside. In fact, the High Court observed that the Tribunal ought to have quashed the order converting the proceedings under Section 147(b) from that under Sec....