9911796707
TMI Blog1992 (1) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... opies thereof are marked as exhibits P-1 to P-4. The petitioner states that they have engaged commission agents for sale of their products and the commission paid to these persons is duly debited in the commission account. According to the petitioner, none of these selling agents are persons in any way connected with the petitioner or its directors or major shareholders. These agents have rendered substantial service to the petitioner. The commission paid to them has, therefore, gone into the profit and loss account. It is the details of these payments that were furnished to the first respondent at the time the assessments for 1979-80 to 1982-83 were completed as per exhibits P-1 to P-4. The assessments for 1983-84 to 1987-88 were also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tioner's letters sent in reply to the notices received on the two occasions are exhibits P-14 and P-15. The matter is pending and fresh assessments are yet to be made. The petitioner has filed this original petition challenging the aforesaid notices received by them, alleging that the notices have been issued illegally and without jurisdiction and without application of mind. It is also stated that there are errors apparent on the face of the record in issuing these notices to the petitioner. The petitioner states that the two conditions precedent for the issue of notices under section 147(a), namely, that the assessing authority had reason to believe that income chargeable to tax had escaped assessment, and (2) that such escape was by re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be completed before March 31, 1992, by virtue of the mandate contained in section 153 of the Act. Apart from writing the letters, exhibits P-14 and P-15, the petitioner did not choose to challenge the proceedings, exhibits P-10 to P-13, at any anterior time and has come forward with this petition at the last moment, when only less than three months' time is left for completion of the proceedings. I do not think that such a delayed approach to this court should be encouraged or that this petition should be entertained, particularly when the petitioner cannot complain of any prejudice by pursuing the proceedings before the departmental authorities. It is true that a notice under section 147 can be issued only if certain conditions preceden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contention. It had been held by the Supreme Court as early as in 1969 in ITO v. M. K. Mohammed Kunhi [1969] 71 ITR 815, that the appellate authority functioning under the Income-tax Act is vested with the power to stay the collection of disputed demands pending the appeal, despite the absence of a specific power in the Act. This court has repeatedly held that this power is to be exercised reasonably and with reference to relevant facts and circumstances and not arbitrarily or capriciously. This court can, therefore, presume that the appellate authority will execute his power to grant stay reasonably and legally, if any approach is made by the petitioner for that purpose. This court has interfered under article 226 in cases where the authori ..... X X X X Extracts X X X X X X X X Extracts X X X X
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