N. V. BALASUBRAMANIAN, J.

In compliance with the directions of this Court in TCP Nos. 542 to 544 of 1983 and 310 of 1984 dt. 10th December, 1984, the following question of law in relation to the assessment of income of the assessee for the asst. yr. 1971-72 to 1974-75 under s. 256(2) of the IT Act, has been referred to us for our opinion:

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding and had valid materials to hold that the reopening of the assessment for 1971-72 to 1974-75 was invalid in law and should, therefore, be cancelled?".

The assessee, M/s Assembly Rooms, is a trust founded by Lord Wellington on 3rd November, 1923. According to the Tribunal, the assessee was treated as a public institution. The assessee derived income in a theatre popularly known as "assembly rooms"; besides, it had income from investments. The ITO originally completed the assessment for the asst. yrs. 1971-72 to 1974-75 treating the assessee as a charitable trust and granted exemption of the income of the assessee. After the completion of the original assessment, the Revenue audit party brought to the notice of the ITO that the exhibition of cinema