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Issues:
Challenging notices under section 148 of the Income-tax Act, 1961 for assessment years 1985-86 to 1989-90. Detailed Analysis: 1. Background and Notices Issued: The petitioner challenged the notices issued under section 148 of the Income-tax Act for the years 1985-86 to 1989-90. The petitioner, engaged in the commissioning of industrial plant for waste treatment, effluents, and water softening, had been assessed under sections 143(1)(a) and 143(3) of the Act. Deductions under sections 80HH, 32AB, and 80HHC were allowed by the Income-tax Officer for certain years. Appeals were made, and while some were dismissed, others were not pursued due to deductions being allowed. 2. Legal Arguments Raised: The petitioner contended that there was no failure to disclose material facts necessary for claiming deductions, rendering the reopening of assessments illegal. Legal arguments were based on precedents such as Calcutta Discount Co. Ltd. v. ITO and Indra Co. Ltd. v. ITO, emphasizing the conditions precedent for jurisdiction under section 34. The petitioner argued against the validity of the notices under section 147(a) and the relevance of a mere change of opinion for reassessment under section 34(1)(b), citing cases like CIT v. Dinesh Chandra H. Shah and ITO v. British Paints India Ltd. 3. Jurisdiction and Legal Validity: The petitioner further contended that the reasons for reopening assessments lacked relevance and a rational connection, referring to cases like ITO v. Lakhmani Mewal Das and Panchanan Hati v. CIT. Arguments were made against the legal validity of the notice itself, supported by precedents such as Jay Shree Tea and Industries Ltd. v. Deputy CIT. The petitioner emphasized that the court could intervene if the Income-tax Officer lacked jurisdiction to issue the notices, citing ITO v. Santosh Kr. Dalmia. 4. Respondent's Position and Legal Stand: The respondent argued that the writ petition was not maintainable due to alternative remedies available. Legal contentions were supported by judgments like Shyam Kishore v. Municipal Corporation of Delhi and CIT v. N.C. Budharaja and Co. The respondent asserted that the petitioner failed to disclose material facts faithfully, justifying the issuance of the notice under section 148. 5. Court's Decision and Conclusion: After considering the arguments and circumstances, the court found that the petitioner had sufficient opportunity to present its case before the authority. The court cited the Supreme Court's stance in Raymond Woollen Mills Ltd. v. ITO, emphasizing that detailed probing at this stage was unnecessary. The court concluded that the notice issued by the Assessing Officer was legal and valid, directing the officer to pass the order and communicate it to the petitioner within a specified timeframe, allowing the petitioner to take further legal steps as advised. 6. Disposition of Application: The court disposed of the application based on the findings and directed the Assessing Officer to proceed with the order, maintaining the validity of the notice issued and allowing the petitioner to pursue legal remedies as necessary.
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