9911796707
TMI Blog1998 (1) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... the circumstances of the case, the Appellate Tribunal was right in holding and had valid materials to hold that the reopening of the assessments for 1971-72 to 1974-75 was invalid in law and should therefore be cancelled. The assessee, Assembly Rooms, is a trust founded by Lord Wellington on November 3, 1923. According to the Appellate Tribunal, the assessee was treated is a public institution. The assessee derived income in a theatre popularly known as "Assembly Rooms". Besides, it had income from investments. The Income-tax Officer originally completed the assessment for the assessment years 1971-72 to 1974-75 treating the assessee as a charitable trust and granted exemption of the income of the assessee. After the completion of the orig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... audit party has interpreted the provision of the law and, therefore, the report of the audit party could not constitute information for the purpose of reopening the assessment in the light of the decision of the Supreme Court in the case of Indian and Eastern Newspaper Society v. CIT [1979] 119 ITR 996. The Appellate Tribunal held that it was not possible to hold that there was information to justify the reopening of the assessment. Mr. C. V. Rajan, learned counsel appearing for the Revenue, forcibly submitted, that the audit party has not interpreted the law that it merely brought to the attention of the Income-tax Officer the decision of the Supreme Court in the case of Indian Chamber o f Commerce v. CIT [1975] 101 ITR 796, and on the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act. The audit party, in the instant case, according to the Appellate Tribunal, has not merely brought to the attention of the Income-tax Officer the relevant provisions of the law, but interpreted the provisions of the law. No doubt the audit party has drawn to the attention of the Income-tax Officer, the decision of the Supreme Court in the case of Indian Chamber of Commerce v. CIT [1975] 101 ITR 796, but the finding of the Appellate Tribunal is that the audit party has applied the law laid down by the Supreme Court to the facts of the case. The facts of the case clearly show that the audit party has considered the decision of the Supreme Court and applied the same to the facts of the case and in our opinion this process adopted by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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