ASSAM CANE SUPPLIERS Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THIS application under article 226 of the Constitution is directed against a notice under section 148 of the Income-tax Act, 1961, issued by the Income-tax Officer, "A" Ward, Dibrugarh, on 17/18th October, 1961, and two other subsequent notices of 19th/23rd November, 1966, following that.

(2.) THE petitioner is a partnership firm. It submitted a return for incometax for the assessment year 1959-60 and an order of assessment was passed by the Income-tax Officer on 23rd December, 1959, under section 23(3) of the Income-tax Act. Its application for registration for that year was alos refused. THE assessment order was subsequently rectified on 10th March, 1960, and the total income was determined at Rs. 58,530 in place of the earlier figure of Rs. 57,515. THE petitioner preferred an appeal to the Appellate Assistant Commissioner, who allowed the same on 24th September, 1962, and directed the Income-tax officer to give the petitioner benefit of registration for the assessment year 1959-60, THE Commissioner of Income-tax started a proceeding under section 323 of the Income-tax Act, 1922 to cancel the assessment order of 23rd December, 1959, and ultimately cancelled the order of the assessment by memo, dated 26th October, 1961. THE petitioner preferred an appeal before the Income-tax Appellate Tribunal, Calcutta, and the same was allowed by the Tribunal on 16th October, 1961, and the Commissioners order under sectin 33B was set aside. THErefore, the income-tax department applied for reference under section 66(1) of the Income-tax to the Tribunal which was pending at the timeof issue of the rule on 5th December, 1966. We are, however, informed by Mr. Lahiri amd it is not denied by Mr. Battacharjee, tht he same was not pressed by the department before the Tribunal. THE Income-tax Officer, who in this case is successor to the original assessing officer, issued the impugned notice under section 148 on 17/18th October, 1961, on the ground that he had reason to believe that income chargeable to tax for the assessment year 1959-60 has excaped assessment within the meaning of section 147 of the Income-tax Act, 1961. It is stated in the notice that it was issued ofter obtaining the necessary satisfaction of the commissioner of Income-tax

(3.) IT appears from the records that the assessee was asked to produce the following depositors or affdavits from them in support of the alleged cash credirs :