S.K. Sen, C. J. - (1.) HEARD Shri A.N. Agarwal learned counsel for the petitioner and Shri A.N. Mahajan learned additional Standing Counsel for the respondents.
(2.) THE contention of the learned counsel for the petitioner is that it is incumbent upon the Revenue to record reasons before issuing any notice under Section 148 of the Income Tax Act, 1961. We find in this case that before issuing the notice on 12.5.2000, adequate reasons have been recorded which have also been given to the petitioner vide letter dated 26.2.2002 after the petitioner had filed the return. THE reasons recorded by the Assessing Authority for initiating the proceedings under Section 147 of the Act are reproduced below: "For the detailed reasoning given in the assessing order U/s 143(3) dated 20.3.2000 for A.Y. 1997-98, the total unexplained investment in the Friends Apartment was determined at Rs.2,86,77,365/- relating to F.Y. 1994-95 to 1998-99 (A.Y. 1995-96 to 1999-2000). (2) THE above total unexplained investment of Rs.2,86,77,365 in the Friends apartment, also includes an unexplained investment of Rs.40,89,856/- relating to the period of A.Y. 1996-97. In this case original assessment U/s 143(3) was completed on 18.12.1998 where the unexplained investment of Rs.40,89,856/- has not been considered. THErefore, unexplained investment U/s 69 of Rs.40,89,856/- relating to the A.Y. 1996- 97 has to be added in the total income. (3) In view of the above facts I have reason to believe that unexplained investment U/s 69 of Rs.40,89,856/- relating to the A.Y. has escaped the assessment. (4) Issue notice U/s 148(1)" We have perused the reasons recorded by the Assessing Authority for initiating the proceedings under Section 147 of the Act and are of the view that the reasons recorded are relevant for forming a reasonable belief that the income has escaped assessment to tax. In that view of the matter, we do not find any merit in the contentions of the learned counsel for the petitioner. The writ petition fails and is accordingly dismissed and the application for interim relief is also rejected.;