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TMI Blog1975 (4) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... ption. In the view that the Income-tax Officer originally made a mistake in giving the exemption he reopened the assessments in respect of the assessment years 1960-61, 1961-62 and 1962-63 under section 147(b) of the Income-tax Act, 1961 (hereinafter referred to as " the new Act "). In response to the notice issued, the society filed a return, but furnished the same particulars as was done in connection with the original assessment. Though the order of reassessment is not very clear, it may be taken that the Income-tax officer considered that under section 14(3) of the Indian Income-tax Act, 1922 (hereinafter referred to as " the old Act "), as amended by the Finance Act of 1960, the assessee was entitled, in respect of the assessment years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt years 1960-61, 1961-62 and 1962-63, were initiated without proper jurisdiction and were, therefore, not valid ? " Learned counsel for the revenue could not point to any material from which it could be concluded that the Income-tax Officer originally invoked the unamended section 14(3) of the old Act in respect of the assessments for the years 1960-61 and 1961-62. In fact, we find a reference to the amended section 14(3) in the assessment order for 1960-61, while dealing with the exemption relating to the dividends derived from its investment with other co-operative societies. We have, therefore, to proceed on the basis that in respect of the assessment year 1960-61, the Income-tax Officer applied section 14(3)(i) of the old Act as amen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the assessee as falling under clause (i). Since he had granted the exemption in respect of the entire business income, we have to hold that he treated the society as a credit society falling under one of the categories mentioned in clause (i) because only if he had treated the society as a credit society he could have exempted the entire income. As between the two possibilities of making the exemption, one on the assumption that the assessee is a credit society and the other by making a mistake in granting more than Rs. 15,000 on the basis that it is not a credit society we would think that the more probable mistake is the former and not the latter. This is all the more so, because the provisions in section 14(3)(ii) of the old Act and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d section 147(b) could have been invoked. Learned counsel for the revenue contended that the Income-tax Officer could not be said to have entertained any opinion at the time of making the original assessment that the assessee is a credit society and that, therefore, the invoking of the power under section 147 could not be construed as a change of opinion. According to the learned counsel, unless the Income-tax Officer at the time of original assessment has given a finding or expressed an opinion that the society is a credit society, it is open to the Income-tax Officer now to go into that question and decide whether the assessee is entitled to exemption or not. Though, normally, the question of change of opinion would arise only when there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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