BHIM SINGH Vs. INCOME-TAX OFFICER B WARD

JUDGEMENT

(1.) BHIM Singh has filed this writ petition under Articles 226 and 227 of the Constitution of India for the issuance of a writ of certiorari quashing the notice dated March 24, 1975 (copy annex. P-3), issued by the ITO, ' B ' Ward, Rohtak.

(2.) THE facts giving rise to this petition briefly stated are that Bhim Singh, petitioner, is a wine contractor and has been in this trade since 1952. He has his wine shops at different places. He has been an income-tax assessee since the commencement of his business and has been paying taxes regularly. His accounting year is from 1st of April to the 31st of March of the subsequent year and the relevant year for the purpose of this petition is the accounting year 1957-58, corresponding to 1st of April, 1957, to the 31st of March, 1958, relevant to the assessment year 1958-59. During this assessment year the I. T. authorities conducted a raid on the premises known as Purana Karkhana, Jind, and made intensive searches. Certain documents were seized in this raid. Bhim Singh, petitioner, and Shri Dwarka Dass, were the partners in this Purana Karkhana.

(3.) ON May 25, 1966, the petitioner approached the Commissioner of Income-tax, Patiala-II, Patiala, respondent No. 2, with a disclosure statement of his escaped income along with that of his partners and offered to be taxed in accordance therewith. A copy of this petition for settlement has been appended as annex. P-1 to this petition. It is mentioned therein that for the assessment year 1958-59, the total profits of the petitioner along with the other partners was Rs. 99,994. On the basis of this offer, which was accepted by respondent No. 2, a communication dated 27th March, 1967, was addressed by him to the Income-tax Assistant Commissioner, Ludhiana, to levy tax in accordance with the various directions issued in the said letters. Copy of the same is annex. P-2. It was specifically directed that the profit of Rs. 99,994 for the assessment year 1958-59, be divided between the partners as under : Sarvshri: Sarvshri : (i) Bhim Singh 6 annas (ii) Sham Lal 4 ,, (iii) Dwarka Dass 3 (iv) Radha Kishan 3 and that after excluding the profits already taxed, the balance amount should be assessed in the hands of the individual partners as their concealed income.