VED PARKASH NAGORI Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioner has invoked jurisdiction of this Court under Art. 226 of the Constitution of India for quashing the notice issued by the respondent under S. 148 of the IT Act, 1961 (for short, 'the Act'), proposing reassessment of his income for the asst. year 1997 98.

(2.) THE facts of the case are that on 31st Aug., 1997, the petitioner filed a return for the asst. yr. 1997 98 showing an income of Rs. 66,720. He also claimed refund of Rs. 12,145 towards the advance tax paid during the relevant year. The AO finalised the assessment under S. 143(1)(a) and granted refund in terms of the prayer made by the petitioner. Thereafter, he issued notice annexure P 2, dt. 31st Jan., 2000, and called upon the petitioner to file a return for the assessment of the income which had escaped assessment. In response to the notice, the petitioner filed the return Annexure P.3, dt. 1st March, 2000, showing his income at Rs. 66,720. Thereafter, vide Annexure P 4 the respondent conveyed the reasons for reopening the assessment. The same read as under :

(3.) IN his written statement, the respondent has prayed for dismissal of the writ petition by asserting that it is premature. He has averred that no order adversely affecting the petitioner has been passed so far and, therefore, he cannot seek intervention of the Court at this stage. On the merits it has been averred that the petitioner had purchased shop plot for a much higher price than the one specified in the sale deed and it has been done with a view to avoid the payment of tax. According to the respondent, the impugned notice was issued in the light of revelation made about registration of sale deed by paying stamp duty in lieu of the value of the land which was shown as Rs. 4,60,000.