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TMI BlogSec.147(b)-Ambit of word 'Information'.X X X X Extracts X X X X X X X X Extracts X X X X ..... below:- i) When sec.147(b) of the I.T.Act is read as referring to information as to law what is contemplated is information as to the law created by a formal source. It is law, we must remember which because to issues from a competent legislature or a competent judicial or quasi-judicial authority, influences the source of the assessment and decides any one or more of those matters which determine the assessees tax liability. ii) In every case, therefore to be law, it must be a creation by a formal source either legislative or judicial authority. A statement by a person or body not competent to create or define the law cannot be regarded as law. iii) Whether it is the internal audit party of the I.T.Department or any audit party of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g an assessment u/s.147(b). However if the audit objection Communicates law created by legislature or by a judicial or quasi-judicial authority it will constitute information. ii) The decision in R.K.Malhotra vs. Kasturbhai Lalbhai (109 ITR 537) has been over-ruled by the supreme court in I.E.N.S judgement(119 ITR 996) iii)The instructions/circulars issued by the board similarly cannot constitute information within the meaning of sec.147(b). If the instructions/circulars communicate law, on the analogy of the communication of law by an audit party they would constitute information. iv) change in the legal position made by a retrospective amendment of law is information u/s.147(b). v) A decision of the supreme court or a high court will ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but it is not possible to take recourse to section 154 or sec.147 it should be examined whether remedial action is possible u/s.263 and if so a proposal to this effect should be sent to the CIT immediately. Where no remedial action is at all possible, u/s.154,147 and 263 and the point raised in the audit objections is valid and applicable in the pending assessments such assessments may be completed taking into account the points raised in the audit objection and Internal/Receipt Audit informed accordingly. 5. Since there are definite time limits for taking action u/s. 263,147(b) and 154 it is absolutely necessary that audit objections, especially the major ones which are later converted into draft paras for inclusion in the Audit report a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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