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Issues Involved:
1. Validity of reassessment proceedings under section 147(b) of the Income-tax Act, 1961. 2. Determination of ownership of the superstructure known as Sashi Sadan and its inclusion in the assessee's total income under section 22 of the Income-tax Act, 1961. Issue-wise Detailed Analysis: 1. Validity of Reassessment Proceedings under Section 147(b) of the Income-tax Act, 1961: In this case, the first question relates to the reopening of the assessment under section 147(b) of the Income-tax Act, 1961. The section authorizes the Income-tax Officer (ITO) to reopen an assessment if he has reason to believe that income chargeable to tax has escaped assessment due to information in his possession. The key requirements are the belief of escaped income and that such belief must be formed in consequence of information. It is emphasized that mere change of opinion does not justify reopening an assessment. However, a change of opinion based on new information is permissible. The information can be regarding facts or law and can come from internal or external sources, including the revenue department's records. In this case, the ITO had new information suggesting that the assessee's income from Sashi Sadan had escaped assessment. This information was derived from a note prepared by the Inspecting Assistant Commissioner (IAC), which indicated that the amount received from the sub-lease should be taxed as capital gains and that the annual value of the property should be included in the assessee's income. The Tribunal upheld the validity of the reassessment proceedings, stating that the ITO had acted on new information and not merely changed his opinion. The High Court agreed with this view, citing various judicial precedents that support the reopening of assessments based on new information. 2. Determination of Ownership of the Superstructure Known as Sashi Sadan: The second question addresses whether the assessee was the owner of the superstructure known as Sashi Sadan and whether its income should be included in the assessee's total income under section 22 of the Income-tax Act, 1961. The assessee, a private limited company, had leased a property from Maharaja Probirendra Mohan Tagore and subsequently constructed several buildings, including Sashi Sadan. The assessee then transferred Sashi Sadan to a third party by way of a sub-lease. The Tribunal held that the assessee remained the owner of the superstructure and that the income from Sashi Sadan should be included in the assessee's total income. The Tribunal noted that the deed of assignment used the term "sub-lease" rather than "sale" and that the consideration received was more akin to a premium for the sub-lease rather than a sale price. The High Court examined the relevant clauses of the lease and the deed of assignment. It was noted that the lease allowed the lessee to construct buildings on the leased land, but these buildings would revert to the lessor upon the lease's expiration. The deed of assignment transferred the superstructure by way of sub-lease, not sale, and the lessee retained certain rights and obligations, such as paying municipal taxes and the right to renew the lease. The High Court concluded that the transaction was a sub-lease, not a sale, and that the assessee remained the owner of the superstructure. Therefore, the income from Sashi Sadan was rightly included in the assessee's total income under section 22 of the Income-tax Act, 1961. Conclusion: The High Court answered both questions in the affirmative, upholding the validity of the reassessment proceedings and confirming that the assessee was the owner of the superstructure known as Sashi Sadan, making the income therefrom liable to be included in the assessee's total income.
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