SHANMUGASUNDARAM TEXTILES Vs. INCOME TAX OFFICER THIRD

JUDGEMENT

(1.) THIS is a petition for the issuance of a writ in the nature of prohibition restraining the respondent from pursuing the reassessment proceedings in pursuance of the notice issued by him under Section 148 of the Income-tax Act, 1961.

(2.) THE petitioner was a partnership firm which was dissolved on 20th March, 1964. For the assessment year 1960-61, the petitioner filed its return of income along with a trading and profit and loss account. THE petitioner was engaged in the manufacture of handloom goods, and for the purpose of manufacture, it had imported 4,310 Ibs. of art silk for the value of Rs. 20,772 under an import licence. At the time of the assessment, the Income-tax Officer appears to have, asked the petitioner to furnish information about the quantity and the value of the imported art silk used in the manufacture. THE petitioner had furnished the above information required by the Income-tax Officer. This is clear from certain entries made by the Income-tax Officer in the trading and profit and loss account filed by the petitioner which finds a place in the assessment file produced before us. THE Income-tax Officer accepted the petitioner's return of income and completed the assessment on the basis that the income returned is correct.