PRADEEP KUMAR HAR SARAN LAL Vs. ASSESSING OFFICER

JUDGEMENT

(1.) THIS petition is filed by the petitioner, a partnership firm, engaged in the business of alcoholic liquor for quashing the impugned notice dated August 14, 1995, issued under Section 148 of the Income-tax Act, 1961 (referred to as "the Act"), and for restraining the Assessing Officer, Ward-I, Farrukhabad, from taking up further proceedings pursuant to the impugned notice.

(2.) FOR the financial year ending on March 31, 1989, relevant to the assessment year 1989-90, the petitioner obtained an excise licence in auction for purchasing and selling country liquor through nine shops as specified in the licence dated May 26, 1988. It is averred that the petitioner paid Rs. 31,55,000 towards licence fee and Rs. 16,01,098 as issue price before purchasing the liquor from time to time during the financial year 1988-89. The total cost price of the liquor purchased during the said year is said to be Rs. 1,95,538.35.

(3.) THE petitioner then carried the dispute in appeal before the Commissioner of Income-tax (Appeals). Referring to the case law relevant on the issues raised before the appellate authority, the appeal was allowed observing as under :