NANCY CRAFTS LTD Vs. CIT

JUDGEMENT

(1.) ADMIT .

(2.) THE following substantial question of law arises for consideration:

(3.) THE brief facts of the case are that the assessee is engaged in the activity of manufacturing and exports of garments. For the Assessment Year 2001-02, the assessee filed the return of income at Rs 34,63,640/- on 30.10.2001. Thereafter, the case for the impugned year was selected for scrutiny and notice under Section 143(2)(ii) of the Income Tax Act (hereinafter referred to ,,the Act') was issued by the Assessing Officer (AO) and complied with by the assessee to the satisfaction of the AO and the returned income of the assessee was accepted and for the same, the assessment order was passed on 25.2.2003. Thereafter, assessment was sought to be opened by issuance of notice under Section 148 of the Act on 31.3.2008. After receiving the said notice, the assessee asked for the reasons recorded for issuance of the said notice. Though according to the assessee, these reasons were not supplied, instead, the notice under Section 148(2) was served upon the assessee on 21.7.2008 wherein the clarifications were asked on the following two counts: