1999 (2) TMI 722

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..... on 147(a) of the Income Tax Act, 1961 on the reason recorded, nor any cause for re-opening of the assessment under Section 147(b) of the Act on the reasons recorded on 31.3.77 was justified in law in sustaining the re- opening of assessment under Section 147(b) of the Act on the reasons and grounds given in the order passed an appeal? 2. Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the re-assessment proceeding initiated under Section 147(a) of the Act by issue of notice dated 31.12.76 under Section 148 of the Act on the reasons recorded, could be validly converted into a proceeding under Section 147(b) of the Act subsequently? 3. Whether on the facts and in the circumstan .....

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..... sustained under that Sub-section and converted the same into a proceeding under Section 147(b) and concluded the matter. The order of the I.T.O. was challenged before the Appellate Assistant Commissioner (A.A.C) who set aside the same. But on further appeal by the Revenue, the Tribunal modified the order of the A.A.C. and permitted the I.T.O. proceed afresh under Section 144B of the Act. When the matter came before the High Court, the reference was answered in favour of the assessee and the order passed by the I.T.O. on re- assessment was set aside. In fact, the High Court observed that the Tribunal ought to have quashed the order converting the proceedings under Section 147(b) from that under Section 147(a). 4. On perusal of the records .....

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..... ready available to the Assessing Officer when the first assessment was made. The order passed by the A.A.C. in another case is not 'information' within the meaning of the Section. Hence, neither Clause (a) nor Clause (b) of the Section would apply in this case. 6. In the circumstances, it is unnecessary for us to consider the question whether a proceeding under Section 147(a) could be converted into a proceeding under Section 147(b) in the course of the proceedings without issuing a fresh notice and initiation of a fresh proceeding. Without deciding that question, we come to the conclusion in this case that the order of the Assessing Officer re-opening the earlier order and passing a fresh assessment order is unsustainable and th .....

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