9911796707
TMI Blog1998 (1) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... Thanjai Murasu (P.) Ltd., Madras, it is said, purchased newsprint for the purpose of printing and circulating newspapers. The original assessments for the assessment years 1973-74 and 1974-75 had been completed. Thereafter, it appears the Income-tax Officer received information that in a survey conducted under section 133A of the Income-tax Act, 1961 (for short "the Income-tax Act"), in the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee was excessive, as the borrowed fund had been utilised to advance interest-free loans to certain connected parties, and, thereby there was escapement of income. After hearing the assessee, reassessments were completed and they were challenged before the Commissioner of Income-tax (Appeals), Madras. He cancelled the orders of the Income-tax Officer, in the view that the initiation of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion for initiating reassessment proceedings. On those facts, the assessee raised the question as to whether the finding that the belief of the Income-tax Officer that the income had escaped assessment was based on relevant materials is valid in law. The Tribunal referred the common question for the opinion of this court as below : "Whether, in the circumstances and the facts of the case, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was a stock book (RG 16 register) maintained to comply with the Central Excise Regulations and the said register revealed that both the sister concerns claimed high wastage of newsprint for the relevant assessment years than actually incurred. This apart, interest-free loans were advanced to connected parties and thereby, there was escapement of income. These things apart, the appeals filed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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