BHAGWANDAS SHOBHALAL JAIN Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) ON a prima facie finding that the order of the Assessing Officer is erroneous and prejudicial to the interests of the Revenue, the Commissioner of Income-tax issued notice dated May 10, 2000, under Section 263 of the Income-tax Act, 1961, calling upon the petitioner to file clarification supported with the details. It is this order of the Commissioner which has been challenged by the petitioner in this writ petition, filed under Articles 226 and 227 of the Constitution of India.

(2.) IN view of the order which I propose to pass in this writ petition, it is inexpedient to give in detail the facts of the case. Suffice it to say that the Commissioner of INcome-tax gave notice to the petitioner under Section 263 of the INcome-tax Act. IN response thereto, the petitioner appeared before the Commissioner and prayed for time to file the reply. The petitioner ultimately filed the reply on May 29, 2000, raising various pleas on facts and law. Thereafter, the petitioner has chosen to file this writ petition on May 31, 2000.

(3.) IT is well settled that this court while exercising its power under Articles 226 and 227 of the Constitution of India does not interfere with the show-cause notice unless an exceptional case is made out. As held earlier, foundational facts necessary for issuance of notice under Section 263 of the Income-tax Act exist and in that view of the matter, I do not find it an exceptional case for interference at this stage. The petitioner has already filed its reply. Needless to state that the Commissioner of Income-tax shall take into consideration the pleas raised by the petitioner objectively in accordance with law.