9911796707
TMI Blog1971 (5) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... section 23(3) of the Indian Income-tax Act, 1922. This assessment was made pursuant to a voluntary return filed by the petitioner. In the said return it was the case of the petitioner that the petitioner had sold his wife's ornaments, received at the time of her marriage, at Rs. 1,03,000 in October, 1955, and March, 1956. Upon that basis the assessment was made. Thereafter, on the 25th May, 1967, a notice was received by the petitioner which is the subject-matter of challenge in this application. By the said notice the petitioner was asked by the Income-tax Officer, E-Ward, District I, Calcutta, to give the particulars of the persons to whom gold ornaments were sold. The petitioner was further asked to show cause why the income-tax assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no trade licence was given to the firm. From the said information it appeared to the Income-tax Officer that the evidence produced by the assessee was false and fabricated. Acting upon that, the Income-tax Officer had issued this notice to the assessee in order to give the assessee an opportunity to substantiate his assertions he made at the time of the original assessment. Appearing for the assessee, Dr. Debi Prosad Pal, learned counsel, contended that there was no provision of law which entitled the Income-tax Officer to require the assessee to produce evidence to satisfy the Income-tax Officer whether the assessment should or should not be reopened. According to Dr. Pal, the Income-tax Officer according to certain information can reope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certain omission or failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment, the income of the assessee had escaped assessment. The Income-tax Officer has also power to reopen the assessment on receipt of information even though there is no failure on the part of the assessee. But, before he acts under the provisions of section 147 of the Income-tax Act, 1961, and subsequent sections thereto, he has to act reasonably. For that purpose he can make investigation. It is not obligatory in all cases for him, in my opinion, to make investigation. The statute itself does not impose any obligation upon the Income-tax Officer to make any particular enquiry or investigation before reopening an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not entitled to any notice of any investigation prior to the reopening. In a particular case if for the purpose of acting reasonably the Income-tax Officer carries on investigation, he can do so. There is nothing in the statute to prevent him. As a matter of fact, the statute by implication imposes that obligation to carry on the investigation in certain cases for the purpose of acting reasonably. Reliance was also placed by Dr. Pal on the decision in the case of Gaya Ram Gabbu Lal v. Commissioner of Income-tax. Dr. Pal drew my attention to the observations of the Division Bench of the Allahabad High Court appearing at page 121 of the report. The court observed : " The Income-tax Officer has no right to make a preliminary enquiry before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been noticed that the Income-tax Officer might investigate and ask the assessee to produce certain evidence. In these cases it has been observed that such conducts are conducts showing reasonableness of the officer acting. I am also unable, with respect again, to accept the conclusion of the Allahabad High Court that the Income-tax Officer cannot ask the assessee to produce evidence. If the Allahabad High Court meant by the aforesaid observation that the assessee was not obliged to produce evidence before the assessment was reopened, I am respectfully in agreement. But, if the Allahabad High Court meant that the assessee could not be asked at all and the Income-tax Officer had no right to ask the assessee, for assistance, I am unable to ag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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