- (1.) In the present writ petition, the Petitioner is seeking the following reliefs: (a) issue a writ, order or direction in the nature of certiorari quashing the notice dated March 5, 2002 (annexure 6) issued by the Assistant Commissioner of Income-tax, Najibabad, District Bijnor, Respondent No. 1. (b) issue a writ, order or direction in the nature of certiorari quashing the notice dated September 27, 2002 (annexure 14) issued by the Assistant Commissioner of Income-tax, Najibabad, District Bijnor, Respondent No. 1. (c) issue a writ, order or direction in the nature of prohibition restraining Respondent No. 1 from proceeding with reassessment proceeding under Section 148 of the Income-tax Act for the assessment year 1995-96. (d) issue any other writ, order or direction which this hon'ble court may deem fit and proper in the circumstances of the case. (e) award cost to the Petitioner.
(2.) The brief facts of the case giving rise to the present writ petition are that the Petitioner is a company incorporated under the Companies Act, 1956 and carried on the business of manufacture and sales of sugar and chemical, etc. The Petitioner had two sugar units in the State of U. P. The first sugar unit was situated at Dhampur, District Bijnor and the other unit was situated at Rouzagaon, District Barabanki.
(3.) For the assessment year 1995-96, the Petitioner filed a return on November 30, 1995, disclosing a loss of Rs. 20,61,04,870, which included the loss suffered in the assessment year 1995-96 to the extent of Rs. 69,80,314. Initially, the return of the Petitioner was processed under Section 143(1)(a) of the Income-tax Act (hereinafter referred to as the "Act"). Subsequently, the case of the Petitioner was selected for scrutiny and a notice under Section 143(2) of the Act was issued and the assessment under Section 143(3) of the Act had been completed on March 3, 1998. The assessing authority made an addition of Rs. 6,51,75,548 (Rs. 4,22,93,200 for the Dhampur unit and Rs. 2,28,82,348 for the Rouzagaon unit) on account of undervaluation of closing stock.;