COMMISSIONER OF INCOME TAX Vs. FARUK ANVAR CO

JUDGEMENT

(1.) THIS is a reference under section 256(1) of the Income-tax Act, 1961. An identical question has been referred to us for consideration which reads thus :

(2.) THE question arises in respect of the assessment years 1978-79 and 1979-80.

(3.) IT is too late in the day to contend that the order of a superior authority cannot be treated as information. The assessing authority may gain knowledge as to the provisions of law or as to the interpretation of certain facts relevant to the particular assessment year through whatever source and the same is generally treated as information. This question is now settled by the decision of the Supreme Court in A. L. A. Firm v. CIT . At page 293, the Supreme Court quoted an earlier decision of the Supreme Court in Kalyanji Mavji and Co. v. CIT , wherein four propositions were laid down by the Supreme Court, which read as follows :