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TMI Blog2007 (8) TMI 316X X X X Extracts X X X X X X X X Extracts X X X X ..... the Commissioner. JUDGMENT The judgment of the court was delivered by M. M. KUMAR J.- At the instance of the Revenue the Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh ("the Tribunal") has referred the following question of law for determination of this court by exercising jurisdiction under section 256(1) of the Income-tax Act, 1961 (for brevity "the Act"), which is stated to have emerged from the order dated January 8, 1992, passed in I. T. A. No. 408/Chandi./88, in respect of the assessment year 1981-82: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law to hold that the reassessment proceedings initiated in the case of the assessee in relation to the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 46 of the Partnership Act, 1932. 3. On appeal before the Commissioner of Income-tax (Appeals), the order passed by the Assessing Officer was upheld by holding that the closing stock of the assessee-firm as on the date of dissolution was required to be valued at market rate and not on the basis of the costs shown in the assessee's books of account. On further appeal, the Tribunal held that the assessment could not be reopened merely upon the advice of the audit party because it would amount to change in opinion. The view of the Tribunal is discernible from the following observation: "2. . . . In fact in the impugned assessment order made under section 143(3) on March 25, 1987, read with section 147(b) in paragraph 2 he has frank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6, wherein following observations have been made (headnote): "The opinion of an internal audit party of the Income-tax Department on a point of law cannot be regarded as "information" within the meaning of section 147(b) of the Income-tax Act, 1961, for the purpose of reopening an assessment. But although an audit party does not possess the power to pronounce on the law, it nevertheless may draw the attention of the Income-tax Officer to it. Law is one thing, and its communication another. If the distinction between the source of the law and the communication of the law is carefully maintained, the confusion which often results in applying section 147(b) may be avoided. While the law may be enacted or laid down only by a person or body wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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