JUDGMENT Agarwal, Actg. C.J. 1. The following question has been referred to us by the Tribunal for our opinion u/s 256(1) of the income tax Act, 1961 ('the Act'): "Whether, on the facts and in the circumstances of the case, the income tax Officer was justified in reopening the assessment u/s 147(b) on the basis of the audit report or whether it was a case of mere change of opinion taking the case outside the ambit of section 147 of the income tax Act, 1961?" The ITO as well as the Appellate Commissioner repelled the contention of the assessee that the initiation of proceedings u/s 147(b) of the Act was illegal. The assessee's claim was that the initiation having been done on the basis of audit report could not be taken as a ground for reopening the assessment. 2. In the appeal taken up by the assessee to the Tribunal, its contention was upheld. The Tribunal took the view that on the facts and in the circumstances of the present case, it was a case of change of opinion and the audit report did not furnish any ground to proceed u/s 147(b). 3. Aggrieved by this order, the department made an application for reference to this Court which was allowed by the Tribunal and consequently, this case has come before us. The question referred has already been quoted above. 4. The standing counsel challenged the order of the Tribunal on the ground that the audit report could be taken into consideration for reopening of the assessment. The submission of the standing counsel is not correct. A perusal of the Tribunal's order would show that the assessee had disclosed all relevant and material facts with regard to the interest income and the ITO while framing the original assessment had left out certain part of the income on the view that it was not covered by section 147(b) of the Act. This was a case of change of opinion and, thus, could not form the basis of filing appeal. 5. In Indian and Eastern Newspaper Society, New Delhi Vs. Commissioner of Income Tax, New Delhi, AIR 1979 SC 1960 , the Supreme Court took the view that the opinion of an internal audit party of the income tax Department could not be regarded as information within the meaning of section 147(b) for the purpose of reopening of the assessment. 5. In Indian and Eastern Newspaper Society, New Delhi Vs. Commissioner of Income Tax, New Delhi, AIR 1979 SC 1960 , the Supreme Court took the view that the opinion of an internal audit party of the income tax Department could not be regarded as information within the meaning of section 147(b) for the purpose of reopening of the assessment. Consequently, we answer the question against the department and in favour of the assessee and return the same to the department. No order as to costs.