GOPAL FILMS Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THIS writ petition is presented by an income-tax assessee questioning the legality of the notice issued under s. 148 of the I.T. Act, 1961, proposing to take action under s. 147 of the Act in respect of the assessment year 1968-69.

(2.) FOR the assessment year 1968-69. Assessment was completed on March 22, 1972, (Ex. A) on July 24, 1975, notice was issued under s. 148 of the Act on the ground that the ITO had reason to believe that certain income exigible to tax during the assessment year 1968-69, had escaped assessment within the meaning of s. 147 of the Act.

(3.) FURTHER in the case of C. T. Desai v. CIT [1979] 120 ITR 240, this court has held that business expenditure incurred prior to the commencement of the business, which was clearly attributable to the business was an allowable expenditure, in view of the said decision. It is clear that even on merits, it cannot be said that deduction in question was wrongly allowed.