RANBIR ENGINEERING MILLS STORE Vs. INCOME-TAX OFFICER

JUDGEMENT

(1.) THIS judgment will dispose of Civil Writ Petitions Nos. 3018 and 3132 of 1972. The petitioner in both these writ petitions is an assessee under the I. T. Act, 1961 (hereinafter referred to as "the Act " ). The assessment proceedings relate to the assessment year 1970-71 in CWP No. 3018 of 1972, and to the assessment year 1969-70 in CWP No. 3132 of 1972. The petitioner filed the returns for the relevant years along with certain documents supporting the returns. A list of 27 persons to whom interest was paid by the assessee was furnished before the ITO. The assessment proceedings were completed on 3rd January, 1971. Vide the impugned notices issued under Section 147 of the Act in both the writ petitions, the ITO sought to reopen the assessments made, as it was found that the assessee's income escaped assessment within the meaning of Section 147 of the Act.

(2.) IT has been averred in the petitions that the issuance of the notices is without jurisdiction as the ingredients of Section 147 of the Act are not satisfied. In para. 11 of the return, filed in CWP No. 3018 of 1972, it has been averred as follows : "11. The para. 11 of the petition is admitted. It may be mentioned here that the assessee was only trying to prolong the proceedings after originally promising co-operation on 9th August, 1972. There was hardly any point in asking whether the proceedings were under Section 147 (a) or (b) of the Act because it was clear to the assessee that the proceedings had started because of concealment. "

(3.) IT may be mentioned here that on 25th September, 1970, extensive raids were carried out by the I. T. Dept. under Section 132 of the Act on the permises of various brokers and other parties in the city of Ludhiana. Voluminous documentary material was recovered as a result of the searches that took place and the material was duly examined and processed by various officers of the department. As a result of this examination action was taken against various assessees for concealment of their true income.