Law:

Section:

Section 147, read with section 80HHC, of the Income-tax Act, 1961 - Income escaping assessment - Non-disclosure of primary facts - Assessment year 1987-88 - Whether where assessee in regular assessment was allowed a deduction of Rs. 9.21 lakhs as against Rs. 8.24 lakhs actually allowable under section 80HHC, assessee's case fell under clause (c) of Explanation 1 to section 147(b), and, therefore, action initiated by Assessing Officer for reassessment was valid - Held, yes Yogesh Putney for the Applicant. JUDGMENT Ajay Kumar Mittal, J. - In this reference, the Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh (for short "the Tribunal"), has referred the following question of law under section 256(1) of the Income-tax Act, 1961 (for short "the Act"), for the assessment year 1987-88 :- "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that section 147(b) was not applicable to the case of the assessee inasmuch as the information available with the Assessing Officer at the time of the original assessment could not be reappraised by the Assessing Officer on the ground that excessive relief had been allowed to the assessee under section 80HHC of the Income-tax Act?" 2. Briefly noticed, the facts are that originally the assessment was completed on an income of Rs. 4,32,910 and upon coming to the notice of the Assessing Officer that the deduction under section 80HHC of the Act has not been correctly allowed, a notice under section 148 of the Act was issued. Thereafter, the deduction was reduced from Rs. 9,21,945 to Rs. 8,24,919. Aggrieved by the same, the assessee filed an appeal raising a plea that the action under section 147(b) of the Act was not valid as there was no information with the Assessing Officer to invoke that section. It was further pleaded that the claim had been allowed after considering the assessee's claim at the time of making the original assessment. Since there was no further material available with the Assessing Officer, the action under section 147(b) of the Act was improper. The Commissioner of Income-tax (Appeals), however, rejected the appeal. On further appeal by the assessee to…

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