9911796707
TMI Blog1971 (7) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... ADI J.- The petitioner in this writ petition is a company engaged in the business of tea plantation. For the assessment year 1964-65 the petitioner-company was assessed to income-tax. Exhibit P-1 dated November 30, 1964, is the assessment order passed against it for the year 1964-65. The Income-tax Officer had accepted the return filed by the company with some modifications and found that there was a net loss of Rs. 1,585. Subsequently, it came to the notice of the Income-tax Officer that in computing its business income from the manufacture of tea for the assessment year 1964-65 the company had claimed deduction in respect of a sum of Rs. 20,336 as representing provident fund contributions paid by it in respect of its employees whereas the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounsel pointed out that even at the time of making the original assessment under exhibit P-1 the books of accounts of the company as well as the company's balance-sheet and profit and loss account for the relevant accounting period has been produced before the Income-tax Officer and it was with these materials in his possession that the Income-tax Officer had made the assessment allowing the deduction of the amount of Rs. 20,336 paid by the company by way of arrears of provident fund contributions. The mere fact that there has been a subsequent change of mind on the part of the officer, counsel contends, would not justify his taking recourse to proceedings for reassessment on the ground that he had reason to believe in consequence of inform ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cision of the Madras High Court in Salem Provident Fund Society Ltd. v. Commissioner of Income-tax and the ruling of a Division Bench of this court in United Mercantile Co. Ltd. v. Commissioner of Income-tax. Tested in the light of the principles laid down in the decisions referred to above, there can be little doubt that in the present case the action taken by the 1st respondent for reopening the petitioner's assessment for the year 1964-65 was fully within the scope of the powers conferred on him under section 147(b) of the Income-tax Act. At the time when the original assessment as per exhibit P-1 was made, in computing the assessee's business income from the manufacture of tea the Income-tax Officer had proceeded on an assumption that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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