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TMI Blog1983 (3) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... ectrical machinery had been wrongly allowed. He, therefore, initiated proceedings u/s 147(b) of the IT Act and issued notices accordingly. After considering the assessee's contention, he disallowed extra shift allowances claimed at Rs. 2,02,853 and Rs. 4,41,090 respectively for the detailed reasons given in his orders. On appeals by the assessee, the CIT(Appeals) has accepted the assessee's conten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning no extra shift allowance, against it in sub-item (ii) and also in respect of the items of machinery and plant to which the general rate of depreciation of 10% applied. The orders, however, show that no fresh facts came to the notice of the ITO between the time of the original assessment and the reopening thereof so that for all practical purposes it was change of opinion by the ITO. The quest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ness income'. The ITO treated the audit report as an information and initiated proceedings u/s 147(b) of the IT Act. On appeal the AAC quashed the proceedings. On a second appeal, the Tribunal followed the decision of the Delhi High Court in CIT vs. H.H. Smt. Chand Kanwarji (1972) 84 ITR 584 (Del) and held that an audit report could be regarded as an information. On a direct reference the Hon'ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vered upon a reconsideration of the same matter did not give such a power to the ITO. 3. It is correct that this decision takes a somewhat different view of law than what was taken by their Lordships in R.K. Malhotra, ITO vs. Kasturbhai Lalbhai 1977 CTR (SC) 336 : (1977) 109 ITR 537 (SC) but since this is a later decision and the earlier decisions have been considered therein, we are expected t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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