COMMISSIONER OF INCOME TAX Vs. SAMBHAR SALT LTD

JUDGEMENT

(1.) ON an application under Section 256(1) of the Income-tax Act, 1961, the Tribunal has referred the following questions for our opinion :

(2.) THE relevant assessment year is 1972-73. THE assessment was completed on February 21, 1975. After completion of the assessment order, the audit party has pointed out that Rs. 69,338 have wrongly been allowed as the amount of Rs. 69,338 has not been incurred against the payment of leave, salary and pension to the employees. When this information was passed on to the Income-tax Officer, he recorded the reasons for reopening of the assessment as under :

(3.) MR.Mathur submits that in case the information is regarding the facts and if audit has pointed out the factual mistake in the order, that constitutes information. He placed reliance on the decision of this court in the case of Zoraster and Co. v. CIT [1987] 163 ITR 858, the decision of the Madras High Court in the case of Smt. Indira Devi v. CIT [1994] 210 ITR 537 and the decision of the Supreme Court in the case of CIT v. P.V.S. Beedies Pvt. Ltd. [1999] 237 ITR 13.