KANAK FABRICS Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) BY this petition under article 226 of the Constitution of India, the petitioner has challenged the notice dated March 30, 2000, issued by the respondent under section 148 of the Income -tax Act, 1961 ("the Act") reopening the assessment of the petitioner for the assessment year 1989 -90. The petitioner filed its return for the assessment year 1989 -90, declaring income of Rs. 4,90,211. Assessment came to be framed under section 143(3) of the Act on January 22, 1991, assessing the petitioner's income at a much higher income. Subsequently, the petitioner was informed that the audit wing of the Department had raised certain issues and the respondent required the petitioner to give certain clarifications pertaining to which the petitioner, vide letter dated March 13, 2000, issued such clarifications. Thereafter, the petitioner received the impugned notice dated March 30, 2000, under section 148 of the Act. The petitioner, thereupon objected to the said notice, however, the respondent did not drop the proceedings. It is under these circumstances that the petitioner has approached this court by way of the present petition.

(2.) MR . S.N. Soparkar, learned senior advocate appearing on behalf of the petitioner, invited attention to the fact that the original assessment for the assessment year 1989 -90, was framed under section 143(3) of the Act and that the same is sought to be reopened beyond a period of four years, from the end of the said assessment year, to submit that when an assessment is framed under section 143(3) of the Act, the same can be reopened beyond a period of four years, if and only if an income chargeable to tax has escaped assessment by reason of failure on the part of the assessee:

(3.) ON the other hand, Mr. M.R. Bhatt, learned senior advocate appearing on behalf of the respondent, placed reliance upon the averments made in the affidavit dated March 16, 2001, made by the respondent.