- (1.) This writ petition is directed against a notice issued under Section 148 of the Income-tax Act, 1961. The notice is issued with respect to the assessment year 1974-75. According to the petitioner, prior to the issuance of the impugned notice, a similar notice was issued proposing to reopen the assessment under Section 147(b). The petitioner made a representation to the Inspecting Assistant Commissioner, who directed the Income-tax Officer to drop the proceedings. It is thereafter that the present impugned notice was given proposing action under Clause (a) of Section 147.
(2.) In the counter-affidavit filed by the respondents, it is stated that the assessment is reopened with a view to include in the income of the assessee, the interest earned by him on the security deposit made by him with the Telephone Department under the O. Y. T. Scheme and also the interest earned by him on the deposits made with the U. P. Electric Supply Company, Lucknow. Along with the counter-affidavit, the reasons recorded by the Income-tax Officer (as required by Sub-section (2) of Section 148) have also been enclosed. It would be appropriate to set out the said reasons in their entirety : " It has been noted that the Telephone Department pays interest on the securities deposited with them under the O. Y. T. Scheme till the period the connection is not sanctioned. The assessee-firm is having security deposit of Rs. 3,000 with the A. O., Delhi, and Rs. 1,068.40 with the U. P. Electric Supply Co., Lucknow. Interest on the above securities has not been returned by the assessee nor has any mention of this fact been made during the assessment proceedings. The failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment of the firm of the year resulted in the escapement of income chargeable to tax. I have, therefore, reason to believe that income chargeable to tax amounting to Rs. 250 has escaped assessment. Since more than four years have elapsed since the assessment year for which notice under Section 148 is proposed to be issued, it is requested that necessary sanction may kindly be accorded for the issue of notice under Section 148. (Sd.) Smt. Shalini Sharma, Income-tax Officer, Central Circle I, Lucknow."
(3.) A reading of the reasons discloses that the assessment is sought to be reopened for a very trivial sum. Even otherwise, the reasons show that the interest is payable on the security deposit made for obtaining a telephone connection under the O. Y. T. Scheme. It does not show that any such interest is payable on the deposit made with the U. P. Electric Supply Company. The sum sought to be included is Rs. 250. We find it surprising that, for including such a small amount, notices under Section 148 were given twice over. Apart from that it has been explained in the rejoinder affidavit by the petitioner that he made the deposit of Rs. 3,000 with the Telephone Department under the O. Y. T. Scheme on February 11, 1970, and the telephone connection was given to him on February 21, 1970, It is submitted that since there was not a completed month between the said two dates, no interest was payable or paid. Similarly, it is stated that the sum of Rs. 1,068.40 deposited by the petitioner with the U. P. Electric Supply Company was in respect of bills spread over the years 1960 to 1971 and that there is no provision for payment of any interest thereon nor was it paid. As pointed out hereinabove, the reasons recorded do not mention that any interest was payable on such deposits with the U. P. Electric Supply Company.;