SUDHIR SAREEN Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) A short question for decision in this petition is whether an Income-tax Officer acting under Section 144B, is empowered to confront an assessee with more than one proposed draft orders of assessment, each time raising the amount of assessment or whether he can do the said-exercise only once. The petitioner's contention is that Section 144B restricts the power of the Income-tax Officer only to one draft order of assessment and not more. He further contends that any other interpretation would expose an assessee to unjustified harassment.

(2.) Section 144B read as follows :

(3.) The said section was inserted by the Taxation Laws Amendment Act, 1975 which took effect from January 1, 1976. The Notes on Clauses in the amending Bill do not throw much light on the need of enacting Section 144B. However, in the counter-affidavit filed the object is stated as follows :