- (1.) We have heard learned counsel for the Income Tax Department.
(2.) Apparently a completed assessment was re-opened under Section 147(b) read with Section 148 of the Income Tax Act. The re-opening was upheld by the Tribunal by the order dated 25.1.1985. Subsequently, an application for rectification under Section 254 of the Act was moved by the assessee upon which the Tribunal stated as follows : "At the time of passing the original order the Tribunal has not seen the original reasons which were recorded by the ITO. The ITO stated that he had information in his possession which showed that income chargeable to tax escaped assessment. In the reasons recorded it was not spelt out as to which of the information was in possession of the ITO. No material was pointed out in the reasons recorded, so it can safely be held that there was no material before the ITO for starting proceedings U/s. 147(b) of the Act. So on this ground alone the reopening of the assessment U/s. 147(b) is bad in law. Consequently the application is allowed. The order passed by the Tribunal dated 25th Jan., 1985 is vacated."
(3.) Now the Tribunal has referred the following two questions in the form of this reference : "Whether on the facts and in the circumstances of the case the Appellate Tribunal was justified in recalling the order of the Tribunal dated 25.1.1985. 2. Whether on the facts and in the circumstances of the case the Appellate Tribunal was correct in holding that ITO had no material in his possession when he has issued the notice U/s. 148 for re-opening the assessment ?";