- (1.) B .S. Chauhan , Ghanshyam Dass, JJ Inspite of service to the assessee to engage another counsel, no step has been taken nor any body entered in reference on behalf of the assessee.
(2.) WE heard Sri Shambhu Chopra, learned standing counsel for the revenue. This is a reference under section 256(1) of the Income Tax Act, 1961 referring the following two questions : 'Reference by the Commissioner R.A. No. 431 (All) of 1981, Assessment year 1976 -77 : 'Whether on the facts and in the circumstances of the case, the Tribunal was justified in holding that the reopening of the assessment under section 147(b) was bad in law ?' Reference by the assessee, R.A. No. 298 (Ahd) of 1981, assessment year 1977 -78 'Whether on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the reopening of the assessment under section 147(b) of the Income Tax Act, 1961 was valid ?' ' In view of the judgment of the Hon'ble Supreme Court in Indian Eastern Newspaper Society v. CIT : [1979]119ITR996(SC) , the information regarding the law by the assessing authority and not its interpretation by the audit party, (sic) if the assessing authority applies its mind on the said legal position and finds that it is a case for reopening, the reopening is valid on the ground mentioned under section 147(b) of the Act, 1961.
(3.) SIMILAR view has been reiterated in Tube Suppliers Ltd. v. CIT : [1995]216ITR596(Mad) and Smt. Indra Devi v. CIT : [1994]210ITR537(Mad) .;