1978 (10) TMI 15

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.... SATISH CHANDRA C.J.--While hearing the appeal filed by the assessee in respect of the assessment year 1968-69, the AAC found that the ITO had allowed entertainment expenses in excess of the statutory limit of Rs. 5,000. He further noticed that entertainment expenses were debited not only under the head " Entertainment expenses account " but in other accounts as well. He sent a note to the ITO to ....

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....00. The addition of Rs. 1,514 was deleted. With respect to other items, he upheld the ITO's order in part. Aggrieved, the assessee went to the Tribunal. The Tribunal held that this was not a case of change of opinion. The ITO had information in his possession on the basis of which he could proceed to take steps under cl. (b) of s. 147. It allowed the assessee's appeal in part with respect to some ....

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....nces of the case, the Tribunal was justified in upholding the supplementary assessment in spite of the fact that the additions for which the assessment proceedings were reopened had been deleted by the Appellate Assistant Commissioner and confirmed by the Tribunal to rope in some other items of income which had originally escaped assessment ? " It is settled that if the ITO has jurisdiction to ....

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....ther the note of the AAC, the basis on which the ITO acted, could constitute information. The note related to the state of affairs as found by the AAC in relation to the year 1968-69. There is nothing to indicate that the AAC had books of account for the assessment year in question (1966-67) before him. There is nothing to suggest that there was any connecting link in relation to the assessee's me....