1980 (2) TMI 63

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....e-tax Act,1961 ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal is right in holding that the reopening of the assessments of the years 1970-71 and 1971-72 under section 147(b) of the Income-tax Act, 1961, was invalid ? " The assessment for the two years 1970-71 and 1971-72 was completed by the ITO on September 19, 1972, and the income assessed was " nil " for the first year and Rs. 6,493 for the second year. The wealth-tax assessments were completed on September 20, 1972. The wealth of the assessee consisted of deposits and one build at Maqbool Road, Amritsar, which was valued at Rs. 2,99,836. The assessee had purchased the plot of land for Rs. 71,516 for this building on January, 21, 1969, started the co....

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....und that the said complaint of Shri Girdhari Lal was already on the record when originally the assessment was made on September 19, 1972, and the same, therefore, could not furnish any fresh material for taking action under s. 147(b), nor could any reasonable belief be entertained by the ITO on its basis that the cost of construction had been suppressed. What was done thereafter by the ITO was that he embarked upon a fishing enquiry and chose to make a reference under the W.T. Act to the Executive Engineer (Valuation) although no wealth-tax proceedings were pending for the assessment year 1971-72. The Tribunal was, therefore, of the opinion that the notice issued was clearly unauthorised as it was based on the information gathered as a resu....