M.M.Dutt, J. - (1.) In this appeal, the appellant, S. P. Agarwalla, carrying on a business under the name and style of M/s. S. P. Agarwalla & Co., has challenged the propriety of the judgment of a learned single judge of this court discharging the rule nisi obtained by the appellant on his application under Article 226 of the Constitution.
(2.) In the writ petition, the appellant had challenged the validity of the notice dated September 26, 1969, issued by the ITO, respondent No. 1, under Section 148 of the I.T. Act, 1961. In the notice it was stated by the ITO that the income of the appellant chargeable to tax for the assessment year 1962-63 had escaped assessment within the meaning of Section 147 of the I.T. Act, 1961. The appellant was directed to file a return of his income for the said assessment year within 30 days of the date of the service of the notice. Further, it was stated in the notice that the necessary sanction of the Commissioner of Income-tax, West Bengal-III, had been obtained before the notice was issued.
(3.) It was the case of the appellant that he had truly and fully disclosed all material facts in the return filed by him for the assessment year 1962-63, and had produced all evidence in support of the return before the ITO at the time of hearing of the assessment proceedings. The ITO was satisfied and made the assessment accordingly. It was contended by the appellant that there was no material before the ITO, respondent No. 1, to form the reasonable belief that the income of the appellant had escaped assessment on account of the failure of the appellant to disclose truly and fully all material facts. The appellant challenged the said notice under Section 148 of the I.T. Act, 1961, as illegal, inoperative and void. It was contended that the ITO had no jurisdiction to issue the impugned notice.;