- (1.) This reference application has come up at the instance of assessee vide Income Tax Application No. 4 of 1982, arising out of ITA No. 386 (Alld.)/1978-79 and the following reference has been made by Tribunal: "Whether on the facts and in the circumstances of the case, the Tribunal was correct in holding that once the Income Tax Officer re-open the assessment under Section 147(b) of the Income Tax Act, 1961, he is empowered to consider and assess all the other items afresh?"
(2.) The dispute relates to Assessment Year 1969-70.
(3.) The assessee is a public limited company carrying on business of manufacturing of cotton textile, rayon yarn and television sets etc. The accounting period relevant to the Assessment Year 1969-70 ended on 31.12.1968. The original assessment under Section 143(3) of Income Tax Act, 1961 (hereinafter referred to as the "Act, 1961") completed on 30.03.1972, on a total income of Rs. 30,18,194/-. The Assessing Officer allowed development rebate at 35% in respect of electronic units. Based on Appellate Commissioner's order for Assessment Year 1970-71, the Income Tax Officer (hereinafter referred to as the "ITO") initiated proceedings under Section 147(b) of Act, 1961 by issuing a notice under Section 148 on 15.03.1974. The assessee objected thereto but the said proceedings were upheld by Tribunal with further observation that once ITO reopen assessment on the basis of one item, he is empowered to consider all other items afresh. In the notice dated 15.03.1974, issued by Assessing Officer under Section 148 read with Section 147(b), he said: "On the basis of "Information" within the meaning of Section 147(b), read from A.A.C.'s decision in the case of assessee for Asstt. Yr. 1970-71 regarding non entitlement of higher development rebate to the electronic unit, proceedings are initiated u/s 147(b).";