HEMRAJ MUNSHI RAM Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioner, a registered partnership firm (hereinafter referred to as "the assessee"), filed this writ petition seeking quashing of the notice (annexure 3) issued by the Assistant Commissioner of Income-tax on September 7, 1995, under Section 148 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), declaring that he proposed to "assess the income" of the assessee for the assessment year 1989-90. Also conies under challenge the proceedings under section 147 of the Act initiated pursuant to the impugned notice.

(2.) THE facts of the case are brief and simple and can be stated thus. THE Assistant Commissioner of Income-tax seized the assessee's books of account in the course of a search conducted at the assessee's business premises on November 2, 1988. According to the Revenue, the assessee was maintaining two sets of cash books in respect of the transactions for the first two months of the accounting year. It is an admitted position that from the date of their seizure, the books of account remained in the custody of the Revenue at all material times and continue to be in its possession till date.

(3.) FROM the facts and circumstances stated above, it is manifest that though the assessment order, dated March 11, 1993, was set aside by the Commissioner of Income-tax (Appeals), an assessment of the assessee's income was made under Section 143(3) of the Act. It, therefore, follows that it is the proviso to Section 147 that would cover the assessee's case for the assessment year 1989-90. The proviso in so far as relevant for our purpose is as follows :