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TMI Blog1984 (3) TMI 217X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee and the learned departmental representative. 2. The facts relevant for the determination of the question arising in this case relate to assessment of the profit which arose to the assessee under section 41(2) of the Act on the sale of his truck used in his transport business. The assessee had disclosed this profit in the return which he filed for the assessment year 1978-79, but the ITO took the view that the income was assessable for the year 1977-78, the assessment for which year was also open before him. He, therefore, did not include this profit in the assessment which he made for 1978-79 but assessed it for the reasons recorded in his order for the assessment year 1977-78. The assessee filed an appeal against the latter year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment before the AAC on the ground that the direction issued by the AAC which alone constituted the foundation for the reassessment made under section 147(b) was beyond the AAC's jurisdiction and, therefore, legally invalid. The AAC, however, rejected this contention upholding the validity of the assessment on the strength of the provisions of section 150 of the Act against which the assessee is in appeal before us. 4. The learned counsel for the assessee contends that the authorities below were in error to hold that the provisions of section 150 or section 153 of the Act could confer validity on the impugned reassessment under section 147(b). Those provisions, according to the learned counsel, only lift or remove the bar of limitation wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be collated to the directions which the Appellate Assistant Commissioner can give under section 31. Under that section he can give directions, inter alia, under section 31(3)(b), (c) or (e) or section 31(4). The expression 'direction' in the proviso could only refer to the directions which the Appellate Assistant Commissioner or other Tribunals can issue under the powers conferred on him or them under the respective sections. Therefore, the expression 'finding' as well as the expression 'direction' can be given full meaning, namely, that the finding is a finding necessary for giving relief in respect of the assessment of the year in question and the direction is a direction which the appellate or revisional authority, as the case may be, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come under enquiry is taxable in the assessment year under consideration or any other assessment year. As regards the expression 'direction' in section 153(3)(ii) of the Act, it is now well settled that it must be an express direction necessary for the disposal of the case before the authority or Court. It must also be a direction which the authority or Court is empowered to give while deciding the case before it. The expressions 'finding' and 'direction' in section 153(3)(ii) of the Act must be accordingly confined. Section 153(3)(ii) is not a provision enlarging the jurisdiction of the authority or Court. It is a provision which merely raises the bar of limitation for making an assessment order under section 143 or section 144 or section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -78. It is also true that the finding that the profit was assessable for the assessment year 1978-79 was an incidental finding. But the real question is, would such an incidental finding still constitute information for the purpose of section 147(b) ? 7. For an answer to this question, the scope and meaning of the term 'information' used in section 147(b) has to be kept in view and that has been provided to us in the ruling or the Supreme Court in the case of Indian Eastern Newspaper Society v. CIT [1979] 119 ITR 996 wherein the definition of 'information' in section 147(b) as given in the case of CIT v. A. Raman Co. [1968] 67 ITR 11 (SC) has been quoted with approval : " ...in CIT v. A. Raman Co. [1968] 67 ITR 11 (SC) the Court d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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