2000 (12) TMI 58 - HC - Income Tax

Summary

Issues Involved:
Petition for quashing notices u/s 148, 142(1), and 143(2) of the Income-tax Act, 1961. Challenges based on initiation of proceedings u/s 147, limitation prescribed u/s 153, and pendency of criminal case.

Judgment Details:

Initiation of Proceedings u/s 147:
- Petitioner challenged notices based on Central Bureau of Investigation report and limitation under section 153.
- Respondents argued premature dismissal and non-furnishing of replies by petitioner.
- Court held that criminal case acquittal does not affect tax liability determination.
- Assessing Officer's belief for reassessment not arbitrary; limited court intervention allowed.
- Supreme Court precedent on reassessment criteria cited.

Validity of Notices u/s 148:
- Assessing Officer's reasons for issuing notice under section 148 deemed valid.
- Petitioner's acquittal on bribery charges not relevant to tax liability determination.
- Court emphasized sufficiency of reasons for forming belief under section 147.

Legal Precedents and Court Observations:
- Supreme Court cases Raymond Woollen Mills Ltd. v. ITO and Phool Chand Bajrang Lal v. ITO cited.
- Previous court ruling in Bal Ram Jakhar v. CIT highlighted for similar context.
- Court rejected petitioner's plea for binding effect of special judge's findings on bribery issue.

Conclusion:
- Notices cannot be quashed solely based on petitioner's acquittal of criminal charges.
- Special judge's findings on bribery not binding for tax liability determination.
- Writ petition dismissed based on above reasons.