1980 (7) TMI 129

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.... were taken up by the WTO, we think it necessary to incorporate into this order of the abstract of the order of the WTO justifying the reopening of the assessment under s.17 (b) of the Act as under: " In the income tax case of the assessee interest claimed on the liability which has been claimed in the WT return was disallowed for various years. The disallowance was challenged by the assessee before the appellate authorities on the one pretext or the other and appellate authorities ultimately set aside the income tax assessments for various years with the direction to see the nature of liability on which the interest has been claimed. In the reassessment proceedings the claim of interest has been disallowed. It would be thus seen that si....

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....assessee whereas the factual position is whether this was a definite liability was not even proved till today. I am of the opinion that the proceedings under s. 17(b) have rightly been initiated by the WTO." 4. We have heard the parties before us. The ld. counsel for the assessee reiterated the submissions that the provisions of s. 17 (b) are not at all operative in the case of the assessee for the year under appeal and it is merely a case of change of opinion which is not permitted under the provisions of law. He submitted that the grounds of reopening given by the WTO and the AAC are contradictory in terms. He also submitted that it would be clear from page 9 of the assessee's paper book that the notice under s. 17 was issued by the WT....

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....e under s. 17 of the WT Act can be issued in pursuance of s. 17 (b) of the Act. To our mind there would be no case where the WTO would not be able to reopen an assessment if he were to act as the basis of information flowing from his own order in income-tax proceedings. Therefore, we do not think and we hold that this does not constitute information in possession of the WTO which could justify the initiation of proceedings under s. 17 (b) of the WT Act for the year under appeal. But the matter does not end at that. 7. From the perusal of the immediately proceeding portion of this para of the WTO's order which we have abstracted, he has recorded that, "the appellate authorities ultimately set aside the income-tax assessments for various y....