2001 (12) TMI 18

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..... year 1991-92 as a consequence of any failure or omission on the part of the assessee. The petition is therefore allowed. The impugned notice dated October 3, 1997 (annexure R) is quashed and set aside
B.C. PATEL AND D.A. MEHTA, JJ. For the Appellant : K.H. Kaji, Adv. For the Respondent : Mihir Joshi, Adv. for Manish R. Bhatt, Adv. JUDGMENT D.A. Mehta, J. 1. The petitioner, a partnership firm, has challenged in this petition a notice under Section 148 of the Income Tax Act, 1961 (hereinafter to be referred to as "the Act"), issued on October 3, 1997, for the assessment year 1991-92. 2. As the period of four years had elapsed from the end of the assessment year, namely, the assessment year 1991-92, the respondent was called .....

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..... of the court. 6. On going through the reasons recorded and the documents which have been produced on affidavit, it is apparent that the reasons which are recorded are de hors the facts available on record. Mr. Mihir Joshi, learned standing counsel appearing on behalf of the respondent, stated that in para. 2 of the reasons recorded, the respondent has also referred to action under Section 132 of the Act which was carried out at the premises of one Shri G.D. Shah in February, 1992, and has submitted that at least that part of the reasons would survive vesting the respondent with jurisdiction to initiate and continue action under Section 147 of the Act. 7. On going through the entire reasons recorded, it can be seen that in the penultimate .....

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..... sessment year 1991-92 could have been made during the financial year 1990-91 relevant to the assessment year 1991-92 and hence, "to cover up that probability, protective addition was made in the assessment year 1992-93". Thereafter, in the affidavit-in-reply, the respondent has further stated thus : "Hence, in the relevant case, addition of Rs. 17,98,500 was made in the assessment year 1992-93 on protective basis and substantial addition was required to be made in the assessment year 1991-92 and for that reopening under Section 147 of the Income Tax Act was initiated after recording reasons which are annexed hereto and marked annexure I". 11. From the facts that have come on record, protective assessment for the asses .....

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