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TMI Blog1971 (7) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... ame 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 legal liability to pay the said contributions had not in fact arisen during the relevant year of account but in earlier years. Based on this information the Income-tax Officer initiated proceedings under section 147(b) of the Income-tax Act, 1961, for reopening the assessment. After considering the objections put forward by the petitioner the Income-tax Officer passed a fresh assessment order against the company for the aforesaid year as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany 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 information in his possession that the income chargeable to tax has escaped assessment. The petitioner's counsel sought to derive support for the above contention from certain observations contained in the decision of the Supreme Court in Commissioner of Income-tax v. A. Raman & Co. The dictum laid down by the Supreme Court in the decision cited above far from supporting the contention advanced by the petitioner is an authority for the contrary pos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as 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 in respect of the entire amount coveted by the assessee's claim for deduction in respect of provident fund contributions paid on behalf of its employees the legal liability for payment had accrued during the previous year itself. Subsequently, it came to the knowledge of the Income-tax Officer that out of the said amount, a sum of Rs. 20,336 represented payments made by the company towards arrears of provident fund contributions relating to ear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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