GREAT ARTS PRIVATE LIMITED Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) BY this writ petition, the petitioner has challenged the validity of notice dated March 27, 1976, issued under Section 148 of the Income -tax Act, 1961 (hereinafter referred to as 'the Act'), proposing to reassess the income of the petitioner for the assessment year 1967 -68, on the ground that income chargeable to tax had escaped assessment within the meaning of Section 147 of the Act.

(2.) THE petitioner has also challenged a communication dated October 29, 1979, issued by the Income -tax Officer, Company Circle -XIV, vide which the said officer had conveyed that the reasons leading to the initiation of reassessment proceedings, were not required to be communicated by relying on the Supreme Court decision reported as S. Narayanappa v. CIT : [1967]63ITR219(SC) .

(3.) THE respondents have also placed on record as annexure B to the said counter -affidavit, the statement on oath of Shri Des Raj Sharma who has categorically denied the receipt of Rs. 1,200 or any other amount by way of interest from the petitioner -company. It is the case of the department that this statement, constituted the fresh material and information on the basis of which the Income -tax Officer formed the reason to believe that income chargeable to tax had escaped assessment, warranting reopening of the assessment under Sections 147 and 148 of the Act.