MAHENDRA BHAWANJI THAKAR Vs. S P PANDE

JUDGEMENT

(1.) IN this petition is challenged a notice under Section 34 of the Indian Income-tax Act, Act XI of 1922, issued against the petitioner by the In- come-tax Officer, Special Investigation Circle, Nag-pur. The second respondent is the Appellate Assistant Commissioner of Income-tax, who passed an appellate order in consequence of which the impugned notice under Section 34 of the Indian Income-tax Act came to be issued against the petitioner.

(2.) THE circumstances under which the notice came to be issued against the petitioner may be briefly stated as follows. The petitioner's father, the late Bhawanji Naranji, was carrying on a mining business, principally at Nagpur. He passed away on 25th August 1956, and by a will bequieathed his movable and immovable properties to the petitioner. He originally hailed from Cutch but migrated to Nagpur for business and became a lessee from Government of manganese mines in and round about Nagpur district.

(3.) FOR the assessment year 1947-48 he had made a return of his income and was duly assessed to income-tax as per Exhibit I. By that order passed on 7-12-1948 he was assessed to a total income of Rs. 39,750/ -. According to the petitioner, at the time that the assessment order was passed, he had produced all the evidence in his possession, including his account-books and the Income-tax Officer was satisfied as to the genuineness of the transactions therein disclosed. It is unnecessary for the purpose of deciding this petition to refer to the several transactions which have been set forth by the petitioner in paragraphs 3 and 4 of his petition, though no doubt, they were referred to extensively in the arguments before us.