COMMISSIONER OF INCOME TAX Vs. SAMBHAR SALTS LIMITED

JUDGEMENT

(1.) A prayer has been made by the Revenue that the following two questions of law arise out of the order of the Tribunal dt. 31st March, 1981 in respect of asst. year 1972 -73 which the Tribunal has refused to refer to this Court under S. 256(1) of the IT Act, 1961 vide its order dt. 6th March, 1982 and, therefore, it has been prayed that the Tribunal be directed to refer the same to this Court :

(2.) THE brief facts of the case are that while submitting return a copy of P&L account for the year ending on 30th Sept., 1971 was submitted by the assessee and a sum of Rs. 69,338 was debited in the P&L account as follows :

(3.) ,02,870 upto 30th Sept., 1970 and Rs. 3,80,637 upto the relevant assessment year for which the assessment was made. A sum of Rs. 60,569 was added as provision for staff. Since this figure was reflected in the balance sheet the ITO acted upon mere change of opinion and there was no valid information. The Tribunal proceeded on the basis that the ITO would not have allowed in the original assessment the said claim straightaway a sum of Rs. 69,338 which was shown in the balance sheet. Since the ITO was aware about the said debit entry which required necessary enquiry about the liability, it was implied that the ITO having allowed the claim kept in view balance sheet which reflected the provision and of which he was fully aware. It was held to be a case of mere change of opinion and not a valid information. 3. Sec. 147 reads as under :