9911796707
TMI Blog1999 (8) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... rity of law. They contend that the notice has been issued by the Income-tax Officer without obtaining sanction of the Commissioner of Income-tax or the Central Board of Direct Taxes. They also contend that the Income-tax Officer had no material before him for giving him reasons to believe that the income chargeable to tax has escaped to be assessed. The petitioners contend that the notice has been issued for making fishing enquiry. Though this petition was admitted in November, 1990, and an interim order was granted in favour of the petitioners and though the respondents are served, there is no counter-affidavit filed by the respondents. Learned counsel appearing for the petitioners, therefore, relying on a judgment of the Supreme Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... connection to the decision of the Supreme Court in Madhya Pradesh Industries Ltd. v. ITO [1965] 57 ITR 637. That was a case under section 34 of the Indian Income-tax Act, 1922 (corresponding to section 148 of the Income-tax Act, 1961). The notice was challenged by the assessee before the High Court by filing writ petition. The High Court dismissed the writ petition in limine. The Supreme Court held that where, upon the issue of a notice under section 34 of the Indian Income-tax Act, 1922, a claim was made in a writ petition that the Income-tax Officer had no power to issue the notice and that the power was exercised not for any legitimate purpose for which it may be used, but for the purpose of making a fishing enquiry and to review a previ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TR 925, wherein, relying on the above decision, this court held : "If the existence of these facts is challenged by the assessee before the High Court, it is for the Income-tax Officer to satisfy the court about the existence of the same by filing affidavit and producing the relevant records. If on consideration of such material, the court is satisfied that the conditions precedent did exist, the court may turn down the challenge to the notices but in the absence of anything of the type, the averments of the petitioner supported by the facts set out in the petition are to be accepted and the court is left with no other option than to infer that the Income-tax Officer had no material with him to jusify the exercise of power under section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rts and it is found that they have been made merely with a view to cause prejudice or in the hope that whether they have basis in fact or not some of it at least might stick. Consequently, it has become the duty of the court to scrutinise these allegations with care so as to avoid being in any manner influenced by them, in cases where they have no foundation in fact. In this task which is thus cast on the courts it would conduce to a more satisfactory disposal and consideration of them, if those against whom allegations are made came forward to place before the court either their denials or their version of the matter, so that the court may be in a position to judge as to whether the onus that lies upon those who make allegations of mala fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
