9911796707
TMI Blog1997 (1) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... l referred the following question for the opinion of this court under section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"): " Whether, on the facts and in the circumstances of the case and having regard to section 36(1)(iv) of the Income-tax Act, 1961, the reassessment made under section 147(b) of the Act for the assessment year 1972-73 was properly cancelled ? " ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v) was only 1/5th of 80 per cent. of the initial contribution and not 80 per cent. of the initial contribution itself. He, therefore, held that the amount admissible was only Rs. 9,390 being 1/5th of Rs. 46,950, representing 80 per cent. of initial contribution of Rs. 58,687. Thus, he disallowed a sum of Rs. 37,560 and the reassessment was completed on a total income of Rs. 35,32,840 against Rs. 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is supported by decisions of courts. On the basis of the audit note, the Income-tax Officer came to the conclusion that initial contribution to superannuation fund under section 36(1)(iv) of the Act was only 1/5th of 80 per cent. of the initial contribution and not 80 per cent. of initial contribution itself. This view was taken on the basis of the notification issued by the Central Board of D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the purpose of depreciation, and, therefore, the assessee is entitled to depreciation under section 32 of the Act. The audit note relied upon by the Income-tax Officer is an erroneous one. Therefore, on the basis of the erroneous report, reopening cannot be made, since it would not constitute information under section 147(b) of the Act. Accordingly, we answer the question referred to us in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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