Viswanatha Iyer, J.

This reference under S.256(1) of the Income Tax Act 1961 (the act) is at the instance of the Revenue and concerns the reopening of the assessment made on the respondent-assessee for the assessment year 1972-73. The question referred is:

"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that no reasons had been recorded within the meaning of S.148(2) and so the reopening is not valid?"

2. The assessee, which is a public limited company wholly owned by the Government of Kerala, carries on business in the processing of cashew nuts. The original assessment was completed on February 28,1974. The audit party made a note on August 20,1974 which read as follows:-

"2. In the assessment order, weighted deduction u/s.35B is allowed on an amount of Rs.366547 being commission paid to foreign commission agents. From the details furnished by the assessee it is seen that the amount of Rs.366547 on which weighted deduction u/S.35B has been claimed and allowed includes an amount of Rs.177181 being commission paid to M/s. Drew Brown Ltd., Toronto, Canada. This party does not appear to be a commission agent; but is only a di