ISHWAR PRASAD AGARWALLA Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THIS petition is by a dissolved firm, India Wire Products, and its four partners. The firm was dissolved on March 31, 1976. The firm as well the individual partners seek to quash the (impugned) notices issued by the Income-tax Officer, A-Ward, Tinsukia, to reopen the assessment order of the firm dated November 29, 1972. The facts in the case are as under.

(2.) THE return of the firm for the assessment year 1972-73 was inquired and the income was determined at Rs. 1,19,980 on November 29, 1972. THE Income-tax Officer, A-Ward, Tinsukia, exercising power under Section 247 of the Act informed the firm and its partners that "chargeable tax escaped assessment" for the year 1972-73, and, therefore, the impugned show-cause notice was served on them, to reopen the order. THE assessee protested on September 25, 1976, and later, on October 13, 1976, reiterated the protest. When a suitable reply was not received, they approached this court to quash the notice.

(3.) THE issue is whether the difference between the closing stock as well as the figures indicated in the two accounts was the subject-matter of investigation by the Income-tax Officer before the assessment order on November 29, 1972, was passed.