9911796707
TMI Blog1989 (3) TMI 387X X X X Extracts X X X X X X X X Extracts X X X X ..... e of notice purporting to be under section 148 of the Act issued by respondent No. 3, ITO on 8-1-1985, and replied to by the petitioner on 5-2-1986, which pertained to the assessment year 1973-74. The petitioner also submitted returns under protest. The respondent No. 3 thereupon issued a letter dated 10-3-1986, to the petitioner indicating the approval of the Board showing recording of reasons for the reopening of the assessment and asking the petitioner to attend his office on 21-3-1986, the date on which the assessment proceedings may be taken. The said communication is marked as Annexure P-7 attached with the petition. Annexure P-7(1) is the form and Annexure P-7(2) is another order of the ITO indicating recording of reasons for issuanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and obligations of the parties. It is further argued and submitted by Mr. T.S. Thakur, the learned counsel for the petitioner has not availed of the equally efficacious and appropriate remedies open to him under the Act. The petitioner is a sister concern of its supplier Dewan Modern Breweries Ltd. The repayment of the amount of ₹ 96,448 shown in the balance-sheet filed alongwith the return, does not amount to disclosure of the income particularly when the tax liability reflected in the balance-sheet was not of ₹ 96,448 but was of ₹ 1,08,246.95. No detail or break-up of the said amount was given. About proceedings initiated in 1976 under section 154/155 it is pointed out that the scope was quite different limited only to r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would be without jurisdiction. The important words under section 147(a) are 'has reason to believe' and these words are stronger than the words 'is satisfied'. The belief entertained by the Income-tax Officer must not be arbitrary or irrational. It must be reasonable or in other words it must be based on reasons which are relevant and material. The court, of course, cannot investigate into the adequacy or sufficiency of the reasons which have weighed with the Income-tax Officer in coming to the belief, but the court can certainly examine whether the reasons are relevant and have a bearing on the matters in regard to which he is required to entertain the belief before he can issue notice under section 147(a) (p. 1366) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s it is simply an argument in futility to say that since the communication is issued through the media of the secretary it cannot be said that the Board has not applied its mind while holding the belief for the approval granted. 8. On totality of the circumstances, we do not find that the notice issued, impugned in the writ petition, calls for any interference at this stage or that the same is either illegal or unconstitutional so as to entertain the writ petition. The writ petition is, therefore, dismissed summarily. The interim order passed in CMP/439/86 on 19-3-1986, stands vacated. However, the dismissal of the writ petition will not be as bar to the petitioner to pursue the remedies open to him under law. - - TaxTMI - TMITax - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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