AIR 1979 SUPREME COURT 1960 ::1979 TAX. L. R. 1299 ::1979 SCC(Tax) 336 ::(1979) 12 CurTaxRep 190 ::1979 (4) SCC 357 ::1979 (4) SCC 248 ::(1979) 119 ITR 996 ::(1979) 2 SCJ 450 ::(1979) 2 Taxman 197 ::(1979) 54 Taxation 105

Supreme Court Of India

(From : Income Tax Appellate Tribunal Delhi).*

Hon'ble Judge(s): P. N. Bhagwati, V. D. Tulzapurkar, R. S. Pathak , JJJ

Income-Tax Act (43 of 1961) , S.147(b)— "Information" - Meaning of - Opinion of Internal Audit Party of I. T. Department - Not an "information" within meaning of S. 147 (b) - Re-opening assessment on that basis - Illegal. AIR 1976 SC 203, AIR 1977 SC 2129, 1972 Tax LR 100 (Delhi), 1972 Tax LR 72 (Ker), 1975 Tax LR 712 (Delhi), 1973 Tax LR 134 (Ker), 1977 Tax LR 229 (All) and (1978) 111 ITR 287 (All) Overruled. Whether considered on the basis that the nature and scope of the functions of the Internal Audit Organisation of the @page-SC1961 Income -tax Department are co-extensive with that of Receipt Audit or on the basis of the provisions specifically detailing its functions in the Internal Audit Manual, the opinion of an Internal Audit Party of the Income-tax Department on a point of law cannot be regarded as "information" within the meaning of Sec. 147 (b), and therefore assessment cannot be re-opened on the basis of the opinion of the Internal Audit Party of the I. T. Department. The basis of the belief of Income-tax Officer for the purpose of re-opening assessment must be the law of which he has become aware. The opinion rendered by the audit party in regard to the law cannot, for the purpose of such belief, add to or colour the significance of such law. In short, the true evaluation of the law in its bearing on....