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TMI Blog2001 (1) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... uestion has been referred for the opinion of this court by the Income-tax Appellate Tribunal, Delhi Bench "B", Delhi (in short, the "Tribunal"), under section 256(1) of the Income-tax Act, 1961 (in short, "the Act"): "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the reopening of the assessments under section 147(b) based on the audit report wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he funds invested by the Hindu undivided family in the firm. He also noticed that interest was paid to Gulzari Mal, as an individual, on the funds invested by him in the firm. He was, therefore, of the view that the interest paid to Gulzari Mal, as an individual, has to be disallowed. Accordingly, Rs. 4,793, Rs. 6,577 and Rs. 8,166 for the three assessment years in question respectively were disal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o hold that though the audit party does not possess the power to pronounce on the legal aspects, it nevertheless may draw the attention of the Assessing Officer to certain aspects which constitute information within the meaning of section 147(b) of the Act. It is only that part which embodies the opinion of the audit party in regard to the application or interpretation of law that cannot be taken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax Officer in the assessment. Though there cannot be any interpretation of law by the audit party, it is entitled to point out a factual error or omission in the assessment and reopening of a case on the basis of factual error or omission pointed out by the audit party is permissible under law. As the Tribunal has rightly noticed, this was not a case of the Assessing Officer merely acting at the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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