Hon'ble Prakash Krishna, J. - (1.) These five writ petitions relating to the five assessment years 1997-98 to 2001-02 of the Income Tax Act, challenging the legality and validity of the notice issued under Section 148 of the Income Tax Act (hereinafter referred to as the Act) were heard together and are being disposed of by a common judgment as the common questions of law and facts are involved therein. The arguments were advanced in the writ petition No. 922 of 2004 relating to the assessment year 2000-01. The facts, as jointly suggested by the learned counsel for the parties, are being noticed from the said writ petition, here in below.
(2.) The petitioner, a partnership firm is engaged in the business of trading in jewellery, import of golds, bullion, kirana goods like clove, Dalchini, Gambier, shoe-lining, marble and its sale in the local market, and also in export of gold jewellery. Income tax returns were filed in respect of the afore stated five assessment years and they were processed under Section 143(1) of the Act for the assessment years 1997-98,1998-99 and 1999-2000 and intimations were given to the assessee. However, the assessment for the next two subsequent years i.e. for the assessment years 2000-01 and 2001-02 were completed after scrutiny of the account books under Section 143(3) of the Act, vide two assessment orders, both dated 6-3- 2003. The petitioner, along with income tax return, also enclosed audit certificate in form No. 10CCAC, certifying all particulars of export profits and the claim under Section 80HHC of the Act. The petitioner for the assessment year 2000-01, on the profits shown at Rs. 19,67,675/-, claimed deduction of Rs. 13,20,894/- under Section 80 HHC of the Act. Thus, the net taxable income was shown at Rs. 6,69,5807-.
(3.) The other fact which may have some bearing for the assessment years 1997-98,1998-99 and 1999-2000 is that the premises of the petitioner was searched by the authorities of the Income Tax Department on 3-2-2000. In consequence of search and seizure operation on 3-2-2000, 'block assessment' for the period 1-4- 1989 to 3-2-2000 under Section 158BC of the Act was framed.;