9911796707
TMI Blog1973 (8) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... . For the assessment year 1960-61 the Income-tax Officer, "A" Ward, District II(1), Calcutta, completed the assessment under the old Act, namely, the Indian Income-tax Act, 1922. Thereafter, on the 14th March, 1969, the appellant received a notice issued under section 148 of the Income-tax Act, 1961, whereby the appellant was called upon to submit the return of income for the assessment year 1960-61, as the said Income-tax Officer had reason to believe that the appellant's income chargeable to income-tax for the said assessment year had escaped assessment within the meaning of section 147 of the new Act. It appears that one of the partners of the appellant's firm, Seth Kerorimull, made certain disclosures under the Finance Act of 1965. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the belief of the Income-tax Officer has been stated in paragraph 7 of the affidavit-in-opposition which reads as follows : The Income-tax Officer had reason to believe that the amounts shown to be credited in the books of accounts of the petitioner, namely, the appellant, as and by way of hundi loans and interest shown to have been paid thereon were not genuine and were fictitious. The petitioner omitted and/or failed to disclose fully and truly all material facts necessary for the assessment of the income of the petitioner and that income chargeable to tax escaped assessment. Mr. Pal contended that the case is similar to that of Sheo Nath Singh v. Appellate Assistant Commissioner of Income-tax. In that case it appears that the reason ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion regarding these loans was necessary. Two distinct conditions precedent are to be fulfilled before the Income-tax Officer can exercise jurisdiction under that section : (1) he must have reason to believe that the income has escaped assessment ; (2) he must have reason to believe that such escapement is by reason of omission or failure on the part of the assessee to make a return or to disclose fully and truly all material facts necessary for his assessment for the relevant year. In the instant case it appears to us that the two conditions stated above have been fulfilled and accordingly the Income-tax Officer has jurisdiction to issue a notice under section 148 of the Act. In Burlop Dealers case the Income-tax Officer made a wrong i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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