MYSORE PLANTATIONS LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE petitioner is before me seeking to quash the letter dated June 22, 2000, issued by the first respondent vide annexure E and also to quash the notices dated July 3, 2000, issued by R-2 vide annexures F to F 2 under Section 148 of the Act for the assessment years 1994-95, 1995-96 and 1996-97.

(2.) THE petitioner is a public limited company incorporated under the Companies Act. THE petitioner owns plantation where coffee is grown. THE petitioner in respect of the year ending March 31, 1994, relevant to the assessment year 1994-95 had purchased cast iron moulds and leased the same in favour of certain customers. In the respect of the year ending March 31, 1995, he purchased carbondioxide gas cylinders of the value of Rs. 15,50,000. THE same was purchased from DDK Industries, 612, GM Palya, behind BEML, Bangalore on September 11, 1994, which was supported by an invoice. THE petitioner has referred to various details in this regard. THE Central Government notified the Voluntary Disclosure of Income Scheme, 1997 ("the Scheme" for short). THE petitioner submitted an application under Section 65(1) in respect of the scheme, the petitioner claimed depreciation on machinery and cast iron moulds and gas cylinders. A search under Section 132 of the Income-tax Act was carried out in the business premises of Mega Gas Pvt. Ltd., on March 6, 1996, and it was concluded on May 22, 1996. During the search proceedings it was detected by the Department that DDK Industries, Bangalore, from whom the petitioners claimed to have purchased the cylinders is a non-existent entity. In those circumstances, the respondents in terms of Section 64(2)(ii) of the Scheme and in the light of an answer to question No. 29, decided to cancel the certificate issued under Section 68(2) of the Scheme. Notice was issued in terms of annexure C calling for objections. Objections were filed in terms of annexure D. After considering the objections, the respondents cancelled the certificate in terms of annexure E. THEreafter they have issued annexures F, F1 and F2, notices under Section 148. Those notices provide for an escaped assessment in terms of Section 147. THEse proceedings are challenged by the petitioner.

(3.) AFTER hearing learned counsel on either side, I have carefully perused the material on record.