NAGINBHAI G PATEL Vs. INCOME TAX OFFICER SURAT

JUDGEMENT

(1.) In this petition the notice dated 21st December 1995 issued by the Income Tax Officer Ward I (Surat) for reassessment year 1988-89 issued to the petitioner on the ground that the income of the assessee has escaped the assessment is under challenge.

(2.) The notice is challenged on the ground that there has been no failure or omission on the part of the assessee to disclose fully and truly all material facts necessary for his assessment for the assessment year 1988-89 and the assessing officer in that assessment year (Exh. E dated 27-3-1991) after due application of mind to the facts put before it had come to the conclusion that the petitioner was not liable to capital gains in respect of Rs. 42.00 lakhs received by him under an agreement to sell the land, possession of which was handed over to the buyer in the year 1983, in absence of any duly executed-sale deed. In view of the aforesaid, it is contended that the assessing authority had acted in issuing the notice only on mere change of opinion and he had no reason to hold a belief that the income chargeable to tax for the assessment year 1988-89 has escaped assessment. It is also the case of the petitioner that at any rate it is not a case of failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment for the concerned assessment year. Therefore the notice which has been issued beyond a period of four years from the end of relevant assessment year is wholly without jurisdiction.

(3.) We have heard the learned Counsel and perused the material placed on record.