N.V. Balasubramanian, J.

In compliance with the directions of this Court dt. 15th Feb., 1983, the Tribunal, Madras, has stated a case and referred the following questions of law under s. 256(2) of the IT Act, 1961, for our opinion :

"1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in cancelling the reassessment made under s. 147(b) of the IT Act for the asst. yr. 1972-73 ?

2- Whether, the Tribunal's view that there was no new information within the meaning of s. 147(b) of the IT Act for reopening of the assessment for the year 1972-73 is based on valid and relevant material and is sustainable in law ?

2. The assessee is an individual and the reference relates to the asst. yr. 1972-73 and during the previous year relevant to the assessment year the assessee has derived interest income which was chargeable under the heads, 'Interest on securities', 'House property', 'Capital gains' and 'Other sources'. The assessee during the previous year relevant to the asst. yr. 1972-73 borrowed a sum of Rs. 11.5 lakhs on 16th Oct., 1971, from the Canara Bank repayable with interest at 11.5 per cent p.a. on the said sum. The said sum was utilised by th