1982 (10) TMI 57

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....Act even though all the material facts were before him. Thereafter, he initiated proceedings under s. 148/147(B) of the Act. The reasons recorded and the consequential effect taken on by the ITO are summarised by the CIT(A) as under: "The reasons recorded by the ITO for coming to this decision for the year 1975-76 read as under: "Sri Gulu Thadani and his wife Smt. Padmani Thadani both were partners in the Basant Cinema but their share incomes were not clubbed as required by s. 64(1)(i) in the asst. yrs. 1975-76 and 1976-77. It is, further noticed that the income enjoyed by Smt. Padmani being much more than that of Sri Gulu Thadani, in terms of Expln. 1 of the said section, the share income of Sri Gulu Thadani should have been clubbed ....

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....eved by the order of the CIT(A), the assessee has come up on appeal the reasons recorded by the ITO (reproduced above), the learned counsel for the assessee submitted that an attempt is made by the Revenue to re-open the assessment merely on change of opinion on the material already available on the record. The learned counsel for the assessee also emphasised the fact that in the reasons recorded, the ITO has not indicated that information he had in his possession by which he formed a belief that there was an escapement of income in the case of the assessee. Under the circumstances, the learned counsel for the assessee vehemently argued that the entire proceedings initiated under s. 148 of the Act were bad in law and, therefore, the assessm....

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....the assessee. In the reasons recorded by the ITO (reproduced above), he has nowhere stated that he had certain information in his possession, which led him bear to believe that there was an escapement of income in the assessee's case. On the contrary, it appears from the reasons recorded by the ITO that he had all the particulars necessary for framing the assessment originally. But for reasons best known to him, he had failed to consider the implication of the provisions contained in s. 64(1)(i) of the Act. The reasons recorded by the ITO clearly show that he intended to reopen the assessment on mere change of opinion on the material already available on the record when he framed the assessments originally. It is, by now, a well-settled law....