INCOME TAX OFFICER CALCUTTA Vs. RADHESHYAM LADIA

JUDGEMENT

(1.) This appeal by the Revenue is by certificate and is directed against the judgment of a Division Bench of the Calcutta, High Court which upheld the decision of a single Judge in a writ petition quashing the notices issued to the petitioner under S. 147(a) of the Income-tax Act of 1961 in respect of assessment years 1960-61, 1961-62 and 1962-63.

(2.) Respondent was assessed to income-tax for the assessment year 1960-61 under S. 23(3) of the Act of 1922 on 4-3-1961 and for the following two assessment years under S. 143(3) of the Act of 1961 on 10th and 11th June, 1963, respectively. Notices under S. 147(a) read with S. 148 of the Act of 1961 were issued to the respondent in respect of these three assessment years whereupon he challenged the validity of those notices by filing an application under Art. 226 of the Constitution. Though the notices did not disclose any material to justify their issue, the Income-tax Officer in his return to the rule nisi before the High Court stated:

(3.) Relying upon this decision the learned single Judge quashed the notices. The Revenue appealed to the Division Bench but failed to obtain any relief in view of the said decision of this Court. The Division Bench also took note of the decision in the case of Malegaon Electricity Co. (P.) Ltd. v. Commr. of Income-tax, Bombay, 78 ITR 466. Therein after referring to Muthiah Chettiar case (supra), Hegde, J. speaking for the Court, stated :