MODIPON LTD Vs. ASST COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) Modipon Ltd. has filed writ petition No. 1623/1990 impugning reassessment notice for the assessment years 1984-85 and 1985-86 both dated 19th July, 1989. In the writ petition No. 1624/1990 Modipon Ltd. has impugned reassessment notice for the assessment year 1984-85 and 1985-86 issued to them as successors of Indofil Chemicals Ltd. These two notices are dated 18th October, 1989. In the third writ petition No. 2215/1991, Modipon Ltd. has challenged reassessment notice dated 4th March, 1991 for the assessment year 1986-87. This notice was issued to Modipon Ltd. as a successor of Indofil Chemical Ltd. The reasons to believe for issue of the said notices are not been placed on record. However, there is a letter dated 1st September, 1989 written by the Assessing Officer to the petitioner indicating and stating why the assessment proceedings have been initiated. The said letter is reproduced for the sake of convenience:-

(2.) We may notice that the Assessing Officer had earlier computed and completed the assessment proceedings under Section 143(3) of Income Tax Act, 1961 ["Act? for short] in respect of the assessment years 1984-85 and 1985-86 in the case of Modipon Ltd. The assessment orders passed in the original proceedings dated 27th March, 1987 and 29th March, 1988, are placed on record.

(3.) In the assessment order dated 27th March, 1987, for the assessment year 1984-85, the Assessing Officer has referred to the fact that Indofil Chemicals Ltd. had amalgamated with the petitioner company after Courts approval. It is further recorded that the business income/earnings of Indofil Chemicals Ltd. was treated as income/earnings of chemical division of the Modipon Ltd. Consolidated accounts including the income of the chemical division, which was earlier the business of Indofil Chemicals ltd., was the basis of the assessment order.