MAHADEO LAL TULSYAN Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) This rule is directed against a notice under Section 148 of the Income-tax Act, 1961, dated March 30, 1970, for reassessment in respect of assessment year 1961-62, issued by the respondent No. 1.

(2.) The petitioner is a partner of the firm, M/s. Calcutta Hardware Stores, which carries on business as a dealer in black sheet, sheet cutting and tinkers. On the 1st of April 1970, the petitioner received a notice dated March 30, 1970, issued by the respondent No. 1 under Section 148 of the Income-tax Act, 1961, to reopen the assessment for the year 1961-62, on the reasonable belief that the income of the assessee-firm has escaped assessment. It alleged that the notice under Section 148 was served by affixation in the office of the petitioner. The petitioner being aggrieved against the said notice moved this court in an application under Article 226 of the Constitution and obtained the present rule.

(3.) Mr. Mullick, appearing on behalf of the petitioner contended that the Income-tax Officer had no jurisdiction to issue a notice under Section 148 of the Income-tax Act, 1961, as there was no reasonable belief nor any material on record that the income had escaped assessment.