- (1.) THE following question has been referred in this reference: Whether on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that the Income -tax Officer was not justified to intimate proceedings under Section 147(b) of the Act?.
(2.) IT appears from the record that the ITO re -opened the assessments under Section 147 because according to him relief under Section 35(B) has been wrongly allowed in respect of certain expenditure. The law of Section 147/148 is well settled by now. Re -opening is not permitted on a mere change of opinion on part of the assessing authority on the same material which was available at the completion of the original assessment.
(3.) IT has been laid down in a catena of decision that for re -opening the assessment, the Assessing Officer must have 'reason to believe' that income has escaped assessment and the 'reason to believe' must be founded upon some information of fact which was not part of the record on which assessment had been originally completed.;