V. SELLADURAI Vs. CHIEF CIT

JUDGEMENT

(1.) THE brief facts that are necessary for the disposal of the above writ petition are set out below:

(2.) AN order of assessment for the assessment year 2001 -02 in respect of the petitioner's income came to be passed by the second respondent on 31 -3 -2004. While completing the assessment, the second respondent had obtained a valuation of the cost of construction of the marriage hall constructed by the petitioner from the inspector and allowed a deduction of 10 per cent, from the estimated cost of construction for personal supervision. The first respondent in the exercise of his power under Section 263 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'), issued a show -cause notice dated 8 -3 -2006, proposing to revise the assessment, since the first respondent considered that the grant of deduction at 10 per cent, for personal supervision is erroneous and prejudicial to the interests of the revenue. The said notice was received by V. Selladurai, the son -in -law of the petitioner (assessee) on 11 -3 -2006, and he by his letter dated 20 -3 -2006, informed the first respondent that since the assessee is in abroad the letter was received by him and contents of the letter were conveyed to his father -in -law (assessee) and as instructed by his father -in -law, he is seeking one month's time to file his objections since they have to meet their auditor and obtain his advice. The said V. Selladurai by a communication dated 27 -3 -2006, addressed to the first respondent informed him that since the assessee's power for authorising the auditor to appear in the case is not received, he has been instructed by his father -in -law to explain the position and seek time. In the said communication, objections have been raised for revising the assessment.

(3.) SEPARATE but identical counter -affidavits have been filed by the respondents herein. In the counter -affidavits, the following contentions have been raised: