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Reopening of assessment by Assistant Controller of Estate Duty. Analysis: The judgment pertains to the validity of the reopening of an assessment by the Assistant Controller of Estate Duty. The deceased's estate assessment was initially set aside on appeal, and the matter was remanded for fresh assessment. The key question was whether half of the estate passed to the accountable person after the deceased's death. The Assistant Controller initially held that only half of the estate passed to the accountable person. However, an objection was raised by the internal audit, prompting a direction from the Inspecting Assistant Commissioner of Income-tax to reopen the assessment. The fresh assessment concluded that the entire estate passed to the deceased's wife, leading to an appeal by the accountable person. The Tribunal upheld the decision on merits but questioned the validity of the reopening of the assessment. The Tribunal doubted the validity of the reopening, citing that the grounds for reopening were based on audit objections rather than new information. The Tribunal highlighted that the reopening amounted to a change of opinion, which is impermissible under law. The Tribunal emphasized that the Assistant Controller did not have the authority to reopen the assessment based solely on audit objections without valid information. The judgment referred to precedents that established the distinction between information and audit opinions, emphasizing that audit opinions do not constitute valid grounds for reopening an assessment. The High Court concurred with the Tribunal's reasoning, emphasizing that the Assistant Controller lacked fresh information to justify the reassessment. The Court referenced a Kerala High Court judgment and the Supreme Court's decision in Indian and Eastern Newspaper Society v. CIT, which clarified that audit opinions do not qualify as valid information for reopening assessments. The Court reiterated that the Assistant Controller's reliance on audit objections did not constitute lawful grounds for reassessment. Ultimately, the Court held that the reopening of the assessment by the Assistant Controller was not valid in law due to the absence of new information warranting reassessment. In conclusion, the judgment delves into the procedural validity of reopening an assessment by the Assistant Controller of Estate Duty. It underscores the necessity of fresh information, distinct from audit objections, to justify reassessment. The Court's decision aligns with established legal principles that restrict reassessment based solely on audit opinions, emphasizing the importance of valid grounds supported by relevant information.
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