MOHAMMAD K S Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS income -tax reference is coming up before us at the instance of the assessee. The question referred for decision is as follows :

(2.) THE assessee is the proprietor of an export firm and the assessment year involved in this case is 1980 -81. The relevant accounting period ended on March 31, 1980. In respect of the said assessment year, the Assessing Officer completed the assessment on August 30, 1983. As against the said order, there was an appeal and the income was finally fixed at Rs. 87,400. In view of the order passed by the Tribunal that the provisions contained in Section 41(1) of the Income -tax Act would be applicable to the assessment year 1980 -81, the Income -tax Officer was of the view that this assessmentwill have to be reopened. While recording the reasons for reopening the assessment, the officer referred to the order under Section 263 and the observations made by the Tribunal. The effect of the order of the Tribunal was that the amount claimed for purchase tax liability was assessable for the year 1980 -81.

(3.) HEARD counsel appearing for the assessee and learned senior standing counsel for the Revenue.