SHANABHAI P PATEL Vs. UPADHYAYA R K ITO

JUDGEMENT

(1.) IN this petition the petitioner has challenged the notice issued by the respondent on March 31, 1970, for purposes of reassessment under section 147 of the Income -tax Act, 1961, for the assessment year 1965 -66. The challenged has arisen in the following circumstances :

(2.) THE respondent has opposed this petition on the ground, Inter alia that the only obligation on the Income -tax office before assuming jurisdiction under section 147 of the Act was to issue a notice within the prescribed period, namely, four years as it was done here in the facts of the case and it was not necessary that this notice should have been served on the petitioner within that period, and if the notice is issued within the prescribed period, though served beyond the period, the Income -tax Officer would have jurisdiction to proceed with the reassessment proceedings.

(3.) SECTION 147 of the Income -tax Act, 1961, provides for the power of reassessment of the income escaping assessment on account of the omission or failure on the part of an assessee to make a return under section 139 or to disclose fully and truly all material facts necessary for his assessment for the particular assessment year, or in case where the Income -tax Officer has, as a result of the information, reason to believe that income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions contained in sections 148 to 153, reassess such income or recompute the loss or the depreciation allowance, as the case may be, for the assessment year concerned. Section 148 and 149, which are pertinent for the decisions of the questions arising in this petition, read as under :