AIR 1963 RAJASTHAN 251 ::1963 RajLW 122 ::ILR (1963) 13 Raj 187

Rajasthan High Court

Hon'ble Judge(s): D. S. Dave, L. N. Chhangani , JJ

(A) Income-Tax Act (11 of 1922) , S.34(1)(b)— "Information" - Information covers relevant judicial decision - Judicial decision not on all fours with facts and circumstances of case is not such information. An Income-tax Officer can proceed under Section 34 (1) (b) not only on the basis of a fresh information as to fact but also if he has information as to the true state or the meaning of the law derived freshly from external sources of authoritative character and the word "information" would cover relevant judicial decision. But where the decision on which reliance is placed by the Income-tax Officer is not applicable to the facts and circumstances of the case his action under Section 34 (1) (b) cannot be deemed to be valid in law. In a case where the whole income of the assessee was received in Part "B" State which was a taxable territory and when the entire income was assessed and taxed at the rate prevailing there, there was no justification for the Income-tax Officer to revise his order later on, in the light of the decision in AIR 1954 SC 198, which cause to his notice later on, and to apportion the assessce's total income between Part "A" and Part "B" States on the basis of purchase operations carried out in Part "A" State and impose a higher tax on the part of the income at the rate prevailing in "A" State. In the said case their Lords....