M.Katju, J. - (1.) This writ petition has been filed for quashing the impugned directions and notice dated March 23, 1994 (annexures 5 and 6 to the petition), under Section 142(2A) of the Income-tax Act, 1961. The petitioner has also prayed for a mandamus restraining respondent No. 1, the Assistant Commissioner of Income-tax, Central Circle I, Varanasi, from proceeding in pursuance of the aforesaid directions and notice.
(2.) Heard learned counsel for the parties.
(3.) The petitioner is a company registered under the Indian Companies Act. The petitioner established a vanaspati manufacturing unit at Varanasi. It maintains its account on mercantile basis. For the assessment year 1990-91, the petitioner filed a return under the Income-tax Act on December 31, 1990, declaring a loss of Rs. 24,61,860. Notice under Section 143(2) of the Act dated June 18, 1991, was served on the petitioner on June 21, 1991. Thereafter also several notices dated July 15, 1991, July 30, 1991, November 7, 1991, November 9, 1992, etc., were issued to the petitioner asking for various details and making various queries. However, it is alleged in para. 9 of the petition, that at no stage of the assessment proceedings, did respondent No. 1 tell or indicate to the petitioner that the account books of the petitioner were of complex nature and he was finding it difficult to understand, appreciate or apprehend the entries in the account books.;