ARVIND LAL Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) HEARD counsel for the petitioner.

(2.) THE petitioner seeks to challenge the notice issued under Section 148 of the Income-tax Act, 1961, for the assessment years 1984-85 to 1988-89 on March 7, 1989.

(3.) THE first ground of attack by learned counsel for the petitioner is that for the year 1988 what is revealed should not be and cannot be utilised for the assessment years and, secondly, there is no material for the year in question, hence the notice issued is illegal and liable to be quashed. THE argument is misconceived. If something is revealed on inquiry subsequent to the assessment years, which has been assessed, and on inquiry or on the basis of some material on the record, some income of the assessee has escaped assessment and the material for the year in question is on record, the authority would be within its competence to issue such notice. On behalf of the respondent reliance is placed on the report, where it records, that only part of the building, viz., a verandah and lavatory, is being used for the office purpose and the value of which is recorded as only Rs. 20,000 which was not disclosed and this is the reason that the assessee escaped the tax by not truly disclosing facts. THE following reason is further disclosed by the respondent :