SHASHI KANT GARG Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) BY means of four separate writ petitions filed under Article 226 of the Constitution of India, the petitioner, Dr. Shashi Kant Garg, has challenged the validity of the notices dated 12.9.2000 issued under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') relating to the assessment years 1990 -91 to 1994 -95 where Civil Misc. Writ Petition No. 533 of 2002 relates to the assessment year 1993 -94; Civil Misc. Writ Petition No. 534 of 2002 relates to the assessment year 1994 -95; Civil Misc. Writ Petition No. 539 of 2002 relates to the assessment year 1991 -92, the Civil Misc. Writ Petition No. 540 of 2002 relates to the assessment.year 1992 -93.

(2.) AS all the four writ petitions relate to the same petitioner and raise common questions of law and also as the counter affidavits and rejoinder affidavits have been exchanged between the parties, with the consent of the learned counsel, they have been heard together and are being disposed of finally by a common order in accordance with the Rules of Court.

(3.) ACCORDING to the petitioner, he is the founder Director of M/s Ratandeep Pharmaceuticals Private Limited, (hereinafter referred to as 'the RPPL') which has its registered office and also the Head Office at Muzaffar Nagar. It is engaged in the business of manufacture and sale of C.A. sheets for spectacle frame at Dehra Dun. It started its manufacturing activity during the financial year 1989 -90 and had been filing its return year after year from that year onwards. It could not do well in its manufacturing activities as a result of which it suffered heavy losses. In a meeting of the Board of Directors held on 23.7.1990 a resolution was passed authorising its Director, Dr. Shashi Kant Garg, the present petitioner, to take up new activities. According to the petitioner, the RPPL earned the following commission: -