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Issues:
1. Validity of notice under section 148 of the Income-tax Act, 1961. 2. Grounds for reopening assessment under section 147(a). 3. Dismissal of writ petition by the learned single judge. 4. Applicability of section 147(a) and section 147(b) of the Income-tax Act, 1961. 5. Comparison with judgments from Allahabad High Court and Delhi High Court. Analysis: The appellant was assessed to income tax for the assessment year 1971-72, and subsequently given notice under section 148 of the Income-tax Act, 1961, for the proposed reopening of the assessment. The Income-tax Officer cited reasons for the reopening, stating that loans shown by the appellant were not genuine, leading to a belief that income had escaped assessment due to the appellant's failure to disclose all material facts. The appellant challenged the notice, which was followed by a writ petition on March 4, 1980, disputing the validity of the notice and related notices and summons. The learned single judge dismissed the writ petition concerning the notice under section 148 due to delay but quashed other notices and summons. The appellant appealed this decision, arguing against the dismissal based on delay. The court examined section 147(a) and 147(b) of the Income-tax Act, 1961, to determine the grounds for reopening the assessment. It was established that the reopening was not under clause (a) but based on specific information received by the Income-tax Officer, justifying the belief that income had escaped assessment. The court referenced a judgment from the Allahabad High Court regarding the powers of the Tribunal in converting assessments under different clauses of section 147. However, in the present case, as an appeal from a writ petition, the court emphasized the need for further inquiry based on the information provided to the Income-tax Officer, declining to quash the notice under section 148. Additionally, a judgment from the Delhi High Court was cited, supporting the validation of a notice under section 148 based on clause (b) of section 147, even if initially invoked under clause (a), as long as the facts support the reopening under clause (b). Ultimately, the court dismissed the appeal, aligning with the Delhi High Court's perspective on not striking down notices issued under section 148 if the facts support reopening under section 147(b) but not under section 147(a). The judgment emphasized the importance of considering alternate beliefs under different clauses of section 147 to ensure the validity of the notice under the Income-tax Act, 1961.
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