9911796707
TMI Blog1993 (10) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... of loss of earlier years. The assessment was completed under section 143(3) on 13-8-1984. The total income was determined at Rs. 4,03,770 by disallowing an amount of Rs. 3,666 under section 35B. 3. Subsequently, on 25-3-1988, the Assessing Officer passed an assessment order under section 143(3), read with section 147(b) of the Income-tax Act, 1961. In the course of the said reassessment order, the Assessing Officer stated that notice under section 148 was issued on information that income chargeable to tax had escaped assessment. In the reassessment order, the Assessing Officer disallowed Rs. 29,442 from the foreign buyers' entertainment expenditure of Rs. 34,442. Against the reassessment order dated 25-3-1988, the assessee preferred an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er allowed weighted deduction as claimed. He failed to see that in the course of the assessment proceedings for the assessment year 1983-84 while claiming weighted deduction under section 35B complete details including foreign buyers' entertainment expenses were shown in the same statement in which the weighted deduction was claimed. This statement filed for the assessment year 1983-84 constituted information from a source external to the record for the assessment year under consideration and that it led the Assessing Officer to go into the details filed separately for the export development expenses for the year under consideration. He failed to note that Explanation 2 to section 37(2A) was inserted by the Finance Act, 1983 with retrospect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sel filed 36 items as detailed therein, which included details of the export promotion expenses under item (11). This can be seen at page 1 of the paper-book. The details of export promotion expenses for the year 1980-81 are given at page 7 of the paper book. The said statement clearly showed foreign buyers' entertainment expenses of Rs. 34,442. Thus, it will be seen that all this information was before the Assessing Officer during the original assessment, proceedings which culminated in the passing of an assessment order on 13-8-1984 under section 143(3). So, the Department cannot contend that the error committed by the Assessing Officer in not disallowing any amount under section 37(2A) was information obtained after assessment. It amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... planation 2 to section 37(2A), the foreign buyers' entertainment expenses. It cannot be called a mere change of opinion on the same facts. A mistake apparent on the face of the order of assessment would itself constitute "information". Even though all the facts were in the original records, the case was covered under section 147(b) and the reassessment is not invalid and this was not a case of mere change of opinion on the same facts but a case of getting information that income has escaped assessment --- See Rathinasabapathy Mudaliar's case. This led to the issue of notice under section 148 dated 25-3-1987 which resulted in the reassessment order dated 25-3-1988. In these facts and circumstances of the case, we uphold the reassessment and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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