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TMI Blog1968 (8) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... ation for the purpose of assessment of estate duty would not squarely fall within the meaning of the expression " information " in the context in which it occurs in section 59 of the Act. It has not been disputed, and can indeed not be disputed, that the provisions of section 59 are in pari materia with section 34 of the Income-tax Act, 1922, and section 147 of the Income-tax Act, 1961. The opinion expressed by the Board of Revenue, in the present case, as to valuation, was clearly " information " in the sense in which that expres. sion has been held to have been used in these enactments. The view of the High Court on this point cannot be sustained for the aforesaid reasons. The Division Bench did not decide the first point which related ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er necessary calculations, the net market value of the estate of the deceased was assessed at Rs. 6,61,347 on which demand was created at Rs. 83,519.40. The trustees preferred an appeal before the Central Board of Revenue disputing the correctness of the valuation of the estate of the deceased (Begum) made by the Assistant Controller. The Board of Revenue in its order dated August 6, 1959, expressed the view that the securities in question had not been overvalued but had been undervalued. According to the Board the correct valuation should have been Rs. 3,06,83,760 ; in other words, its opinion was that the face value of the securities being Rs. 4.5 crores, the market value should have been at the rate of 78% whereas the basis adopted by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t petition two main points were raised : the first was that section 59 had been introduced by the Amendment Act and it could not be made applicable to assessments which had become final before July 1, 1960, the date on which the amendment Act came into force. Secondly, the conditions laid down in section 59 had not been fulfilled. It had not been stated what information had been received or was in the possession of the Assistant Controller in consequence of which he had reason to believe that property had been undervalued. It was contended that mere change of opinion would not justify the reopening of assessment. The present appellant in the return filed to the writ petition in the High Court claimed that section 59 as introduced by the Ame ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d point was erroneous. According to him any matter of fact or law which may come to the notice of the appellant after the making of assessment including a finding by a higher authority would be " information " for the purpose and within the meaning of section 59. It is urged that the appellant bad not taken action on mere change of his opinion. The predecessor in office of the appellant had adopted a wrong mode of valuation and the opinion expressed by the Central Board of Revenue about the correct mode was " information " which led to the appellant entertaining a reasonable belief that the property assessed to estate duty had been undervalued. Reliance has been placed on a number of decisions in which the meaning of the word " information ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 35. In Commissioner of Income-tax v. A. Raman Co., it was said that the expression " information " in the context of section 147(b) of the Income-tax Act, 1961, must mean instruction or knowledge derived from extraneous sources concerning facts or particulars or as to law relating to a matter bearing on the assessment. The Bombay High Court, in a recent decision, commissioner of Income-tax v. A. J. Zaveri, after a discussion of the relevant case law, came to the conclusion that " information " within the meaning of section 34(1)(b) of the Income-tax Act, 1922, may consist of a different view taken of the facts on the record by a higher Tribunal on appeal from the Income-tax Officer's decision. In that case it was held that the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rely one of fact nor of law and was a mixed question of law and fact and, therefore, it could not fall within the rule laid down in the aforesaid decisions. We are unable to agree. When the expression " information " is understood in the sense of instruction or knowledge derived from an external source concerning facts or particulars or as to law relating to a matter bearing on the assessment, it is difficult to see how determination of valuation for the purpose of assessment of estate duty would not squarely fall within the meaning of the expression " information " in the context in which it occurs in section 59 of the Act. It has not been disputed, and can indeed not be disputed, that the provisions of section 59 are in pari materia with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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