SHANKARLAL NAGJI AND CO Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) This petition has been preferred challenging notices issued under Section 148 of the Income -tax Act, 1961 (the Act) for Assessment Years 1995 -96, 1996 -97 and 1997 -98.

(2.) The petitioner is a partnership firm, who is assessed to tax under the Act. The petitioner has business of selling fresh vegetables on commission basis in the market outside Jamalpur Gate. The market is run and managed by Agricultural Produce Market Committee (APMC). The petitioner purchases vegetables from farmers and sells the same. According to the petitioner, the petitioner is supposed to get 5% commission on sales as decided by APMC and the petitioner is required to pay market fee at the @ 0.50 paise on every Rs.100/ - of sale, which the petitioner collects from the purchasers of the goods sold by the petitioner.

(3.) Sometime in November, 1997, it is the say of the petitioner, that the petitioner received summons under Section 131 of the Act from the Assistant Director of Income -Tax (Investigation), Unit No.I(1) ('the ADIT (Investigation)' for short) on the basis of some search and seizure proceedings in case of some other dealers in the market. It is the case of the petitioner that the petitioner has no relation, either in business or in any other manner with the said dealers. The petitioner has narrated in Paragraph No.2 of the petition the modus operandi for accounting its commission receipts as explained to the ADIT (Investigation) when the petitioner attended before the said authority with books of accounts. It appears that, according to the petitioner, the ADIT (Investigation) advised the petitioner to avail of the Voluntary Disclosure of Income Scheme, 1997 (the VDIS) which was in operation at the relevant point of time. For this purpose, the petitioner has referred to communication dated 30.12.1997 addressed by the petitioner to the ADIT (Investigation). Ultimately, it appears that the petitioner declared an amount of Rs.6,00,000/ - under VDIS for each of the three years under consideration.