SOORAJMAL SRIGOPAL Vs. INCOME TAX OFFICER F WARD

JUDGEMENT

(1.) The challenge in this case is to the notice issued under Section 148 of the I.T. Act, 1961, dated 23rd February, 1972. The impugned notice was issued for the assessment year 1963-64. It was contended, firstly, that there are no materials for the ITO to form the belief that there was any failure or omission on the part of the assessee to disclose fully or truly any material or relevant fact or that as a result of such failure the income of the assessee has escaped assessment. It was, secondly, contended that the Commissioner was not competent on the facts and circumstances of the case to grant sanction for reopening. It was urged that there was no application of mind by the Commissioner. In answer to the rule nisi issued in this case in the affidavit in opposition on behalf of the respondent it was stated, inter alia, as follows :

(2.) The report in connection with the starting of the proceedings by the ITO which was annexed to the said affidavit-in-opposition stated, inter alia, as follows:

(3.) It appears that along with the report on the 31st January, 1972, the ITO had forwarded a letter to the Commissioner in which it was stated as follows: