COMMISSIONER OF INCOME TAX Vs. MESCO LABORATORIES LTD.

JUDGEMENT

(1.) 6 arising out of ITA No. 93/Del/2002.

(2.) The only question that has arisen in this case is whether the AO recorded reasons for issuance of a notice for initiation of reassessment proceedings.

(3.) The "reasons" recorded by the AO are quoted in the order of the Tribunal and are as follows : "Recording of reasons under s. 147 In this case the assessee has moved an application before Settlement Commission for asst. yrs. 1989 -90 to 1994 -95. application to be proceeded with for asst. yrs. 1989 -90 to 1994 -95. In view of this fact, I have reason to believe that the taxable (income) of the assessee for the financial year 1994 -95 relevant to asst. yr. 1995 -96 has escaped assessment. Issue notice under s. 148 of the IT Act." A perusal of the order shows that sole basis for issuance of the notice was that the Settlement Commission has passed an order under s. 245D(1) of the IT Act in respect of an application moved by the assessee for the asst. yrs. 1989 -90 to 1994 -95.