- (1.) We have heard the learned counsel for both sides.
(2.) The following two questions have been referred by the Tribunal:- 1. "Whether on the facts and the circumstances of the case, the Tribunal's view that report of the valuation officer obtained subsequent to the completion of the original assessment could not be treated as 'information' for the purpose of re-opening the assessment u/s. 147 (b) of the Act is correct in law? 2. Whether on the facts and the circumstances of the case the Tribunal was legally correct in holding that there was neither any information before the assessing officer nor he could have reason to believe that income chargeable to tax had escaped assessment so as to enable him to take action u/s. 147 (b) of I.T. Act, 1961?"
(3.) Briefly, it appears that the original assessment was completed. The Assessing Officer received a report of the valuation officer on the basis of which he re-opened the assessment under Section 147 (b), as it stood prior to its amendment by direct Tax Laws (Amendment) Act 1987 with effect from 1/4/1989. For ready reference the said sub-section is reproduced below:- "147(b)- notwithstanding that there has been no omission or failure as mentioned in cause (a) on the part of the assessee, the Assessing Officer has in consequence of information in his possession reason to believe that income chargeable to tax has escaped assessment for any assessment year, he may................... assess or reassess such income.";