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TMI Blog1990 (2) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... e parties and we find that the grievance of the assessee is well founded because we are of the considered opinion that on the facts and in the circumstances of the case, the impugned assessment was made on the basis of a change of opinion by the Income-tax Officer. This becomes clear if the position of law is properly appreciated and is applied to the relevant facts which are necessary for determination of this issue. 2. The assessee, Mr. Justice S.P. Goyal, filed the return of his income for the year under appeal on 30th July, 1986 vide receipt No. 2461. Below the computation of total income, the assessee appended a note which reads as under : " Additional D.A. and City Compensatory Allowance have not been included in the total income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n that the exemptions claimed by the assessee are not covered by section 10 or any other section of the Act. This assessment was challenged in appeal before the Appellate Assistant Commissioner and he has upheld the order of the Income-tax Officer and dismissed the appeal of the assessee. Hence the present proceedings. 3. In order to determine the issue in appeal before us, we have to bring into focus the settled position of law on this point. But before we do so, we would like to record that the learned Counsel for the assessee relied, for his arguments, on the ratio decidendi of the following judgments : (i) Gemini Leather Stores v. ITO [1975] 100 ITR 1 (SC); (ii) ITO v. Madnani Engg. Works Ltd. [1979] 118 ITR 1 (SC); (iii) Indian ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a, ITO v. Kasturbhai Lalbhai [1977] 109 ITR 537. In this judgment, the Hon'ble Supreme Court observed that the fact that the Income-tax Officer with diligence could have obtained the information during the previous year on a proper investigation of the materials on the record or the facts disclosed thereby, would not make it any the less information if the fact was not in fact obtained and came to his knowledge only subsequently. The Court further observed that the information may be gathered from the assessment record itself. The Hon'ble Supreme Court in the case of Kalyanji Mavji Co. v. CIT [1976] 102 ITR 287 observed to the effect that a case where income had escaped assessment due to, "oversight, inadvertence or mistake" of the Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounts to change of opinion. In the case before us, the Income-tax Officer who made the impugned assessment was apparently embarking upon a different view on the same set of facts because when the original assessment was made, the Income-tax Officer was presumed to have applied his mind and completed the assessment after scrutiny of the return as only when the return is correct and complete to the satisfaction of the Income-tax Officer, it can be accepted under section 143(1) of the Act. The return is complete along with its annexure and in the return, the assessee had clearly stated that Additional D.A. and City Compensatory Allowance are not shown as income because of the judgment of the Hon'ble Madhya Pradesh High Court. The Income-tax Of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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