BHOLA NATH MAJUMDAR Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) By these two writ applications, the petitioner had challenged the notices issued under s. 148 of the IT Act, 1961, by the respondents after a period of four years from the date of the assessment. The notices relate to the asst. yrs. 1984 -85 and 1985 -86. From the notices dt. 13th Dec., 1990, under s. 148 of the IT Act, 1961, it appears that the said notices were issued alleging that the ITO had reason to believe that the income for the asst. yrs. 1984 -85 and 1985 -86 escaped assessment. As such, the said officer was entitled to reassess the income of the assessee for the said two assessment years. The said notices contain a further sentence relating to the obtaining of the necessary satisfaction of the Dy. CIT for issuance of such notices. The said notices were challenged by the petitioner by a letter dt. 28th Dec., 1990, whereby the petitioner stated that the conditions precedent for assumption of jurisdiction under s. 147(a) of the Act were not satisfied and as such the notices were bad and illegal. It was stated that there was no reason to believe that income escaped assessment for the asst. yrs. 1984 -85 and 1985 -86.

(2.) THE case of the petitioner before this Court is that the IT authorities have no reasons to believe that any income escaped assessment or that the petitioner has failed to disclose material facts truly and fully required for the purpose of making the assessment for the said assessment years. According to the petitioner, all the relevant material facts have been disclosed at the time of filing of the return. The returns for the asst. yrs. 1984 -85 and 1985 -86 were filed along with the balance sheets and P&L; a/c. The balance sheet shows that a sum of Rs. 86,911.70 was spent for the construction of the house during the earlier years and a sum of Rs. 95,444.82 was added towards the construction during the asst. yr. 1984 -85 totalling a sum of Rs. 1,82,356.52. The balance sheet for the asst. yr. 1985 -86 shows that a sum of Rs. 1,82,356.52 was spent for the construction of the house during the earlier assessment years and a sum of Rs. 2,12,825.72 was added towards the construction during the asst. yr. 1985 -86 totalling a sum of Rs. 3,95,182.24.

(3.) SECS . 147, 148 and s. 151 of the IT Act, 1961, read as follows :