1981 (2) TMI 39

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.... reference under s. 256(1) of the I.T. Act, 1961 (hereinafter referred to as " the Act "), the Income-tax Appellate Tribunal, Indore Bench, has referred the following question of law to this court for its opinion: " Whether, on the facts and in the circumstances of the case, the instant case falls within the ambit of section 147(b) of the Income-tax Act, 1961 ?" The material facts giving ris....

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....assessee showed cause; but the ITO included in the total income of the assessee a sum of Rs. 52,196 as income from undisclosed sources. On appeal before the AAC, it was contended by the assessee that the reassessment proceedings initiated by the ITO under s. 147(b) of the Act were invalid. This contention was rejected by the AAC and, on further appeal, by the Tribunal. Hence, at the instance of th....

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....e the ITO can take action under cl. (b) of s. 147 of the Act : (i) he should have reason to believe that income has escaped assessment and, (ii) it should be in consequence of information received after the original assessment. If either condition is not satisfied, the action of the ITO in initiating proceedings under s. 147(b) of the Act would be without jurisdiction. In CIT .A.Ramanand Co. [1968....

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....erial and no more does not give the ITO power to reopen the assessment under s. 147(b) of the Act. But in the instant case the Tribunal has found that it was as a result of information received by the ITO, regarding evasion of tax by the partners of the firm of which the assessee was a partner, that the ITO had reason to believe that the income of the assessee had escaped assessment and that he ha....