Law:

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Section 147(b) of the Income-tax Act, 1961 - Reassessment - Information - Assessment year 1975-76 - ITO reopened assessment of assessee under section 147(b) - Record showed that subsequent to original assessment no information was received by ITO on basis of which he could have reopened assessment and that what ITO was trying to do in reassessment proceedings was to rectify his original order - Whether reopening of assessment was not valid - Held, yes FACTS The ITO reopened the assessment of the assessee under section 147(b). On writ, the assessee challenged reassessment proceedings : HELD On going through the relevant record and the reasons recorded by the ITO it was evident that the ITO was merely trying to rectify the mistakes committed by him in granting higher depreciation on the lifts and in the matter of calculating the amount allowable as repairs from the income derived from the house property. Indeed, he could have rectified the mistakes under section 154 but he did not choose to do so and chose to reopen the assessment under section 147(b). Further, so far as the valuation of the closing stock was concerned, it appeared to be merely a change of opinion. Suffice it to say that there was no information received by the ITO on the basis of which he could have reopened the assessment. What the ITO was trying to do was to rectify his order. Therefore, the reopening of the assessment in question was not valid. JUDGMENT Reddy, CJ.-This writ petition is directed against a notice issued by the ITO, under section 148 read with section 147(b) of the Income-tax Act, 1961 ('the Act') relating to the assessment year 1975-76. 2. The petitioner had submitted his return for the said assessment year on the basis of which assessment was made on 28-4-1978. Impugned notice had been issued on 28-3-1980. The notice, of course, does not disclose the informa-tion, on the basis of which it was issued. Be that as it may, soon after receiv-ing the said notice the petitioner approached this Court by way of this writ petition which was entertained and admitted on 31-7-1980 and the respondent was called upon to file a counter. The respondent has filed a counter stating that the…

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